Petroliam Nasional Bhd (Petronas) has awarded Block SB405, located off the coast of Sabah, to
ConocoPhillips East Malaysia Ltd (COPEM) and Petronas Carigali Sdn Bhd (PCSB), which is expected to bolster exploration activities off the coast of Sabah following the opening of more block investment opportunities in the country.
The production sharing contract (PSC) was signed today, the group said in a statement. Petronas, PCSB and COPEM were represented by senior vice president of Malaysia Petroleum Management, Mohamed Firouz Asnan; vice president of exploration, upstream, Emeliana Rice-Oxley; and president of COPEM, Erik Keskula, respectively.
COPEM is the operator for Block SB405 PSC, with a participating interest of 85%, while PCSB holds the remaining 15%. The block is located in the Northeast Sabah basin, off the coast of Sandakan, with an area size of 5,857 square kilometres and in water depth of up to 100 metres.
Petronas said SB405 is the new addition to COPEM’s existing interests in five PSCs in Malaysia, which are Block J, G and Kebabangan located off the coast of Sabah, and SK304 and WL4-00 located off the coast of Sarawak.
“The entry of COPEM with its world class proprietary seismic technology into Block SB405 is expected to enhance the hydrocarbon resource potential off the coast of Sabah. This is an area that has a proven working petroleum system with previous discoveries such as Kuda Terbang and Nymphe fields. At the same time, the new investment of COPEM in Block SB405 represents enhanced confidence of foreign investors in the upstream sector in Malaysia,” Mohamed Firouz said.
He said the partnership with PCSB provides that winning combination to support the potential development of the resource within the Northeast Sabah basin area upon successful commercialisation of the discoveries.
“Under our right asset, right player strategy, we hope to unlock the full potential of the hydrocarbon resources in Malaysia towards successfully delivering clean and reliable energy to our customers in Malaysia and abroad,” he added.
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