Petronas awards offshore Malayasia PSCs

Petronas has awarded production sharing contracts (PSCs) for block SB309 and block SB310 to a partnership between Talisman Malaysia and Petronas Carigali.

Offshore staff

KUALA LUMPUR, Malaysia -- Petronas has awarded production sharing contracts (PSCs) for block SB309 and block SB310 to a partnership between Talisman Malaysia and Petronas Carigali.

The offshore Malaysia blocks, which cover 5,815 sq km and 7,271 sq km (2,245 and 2,807 sq mi) respectively, are in water depths of up to 150 m (492 ft). Previous exploration efforts were confined to the blocks’ shallower sections; the deeper sections remain mostly under-explored.
Under the terms of PSCs, Talisman Malaysia will operate the blocks with a 70% interest. Petronas Carigali, the exploration and production arm of Petronas, will own the remaining 30% interest each block.

For block SB309, the partners are committed to acquire 1,300 sq km (502 sq mi) of new 3D seismic data and to drill three wells to a minimum aggregate depth of 8,500 m (27,887 ft). The minimum financial commitment for the block is estimated at $75 million.

For block SB310, the partners will acquire 1,300 sq km (502 sq mi) of new 3D seismic data and drill five wells to a minimum aggregate depth of 14,500 m (47,572 ft). The minimum financial commitment for the block is estimated at $117 million.

10/27/2009

More in Company News