PETRONAS Inks PSC with TotalEnergies, Shell Through New PSC

PETRONAS Inks PSC with TotalEnergies, Shell Through New PSC

PETRONAS has inked a production sharing contract (PSC) with TotalEnergies EP Malaysia (TE), PETRONAS Carigali Sdn Bhd (PCSB), Sabah Shell Petroleum Company Limited (SSPC) and Shell Sabah Selatan Sdn Bhd (SSS) for Block 2K, an ultra-deepwater block located off the coast of Sabah.

Block SB 2K, with a depth of up to 3,000 meters and a surface area of 1,952 sq km, is situated in a known hydrocarbon basin with substantial hydrocarbon potential in the thriving northwestern ultra-deep-water region.

According to the PSC’s rules, TE, a fully owned subsidiary of TotalEnergies SE of France, will serve as the operator with a 34.9% participating interest. The other two partners, SSPC and SSS, split the remaining 25.1% equally, leaving PCSB with a participating stake of 40%.

Senior Vice President of Malaysia Petroleum Management (MPM) Mohamed Firouz Asnan signed the PSC on behalf of PETRONAS. TE was represented by General Manager, Exploration and Production Malaysia, Xavier Faugeras. Vice President of Exploration Mohd Redhani Abdul Rahman of PCSB, Finance Manager Hilmi Yusof of SSPC, and General Manager Prithipal Singh of SSS of Sabah Deepwater, Upstream Malaysia, respectively, were all present.

Mohamed Firouz said, “The signing of the PSC for Block 2K completes the licensing of the five ultra-deepwater blocks off the coast of Sabah, along the newly identified Oligo-Miocene carbonate trend proven by Tepat-1 oil discovery in Block N in 2018. Block 2V was signed last year followed by Blocks 2W and X early this year.”

“A total of four wells are expected to be drilled in these ultra-deepwater blocks in 2022 and 2023, to explore within this emerging hydrocarbon province,” he added.

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