Petronas has awarded two production sharing contracts to Shell and Petronas Carigali Sdn Bhd for the ultra-deepwater blocks ND6 and ND7 offshore the east coast of Sabah.
The two blocks are in 200-4,000 m of water in the Tarakan basin, between 100 km and 180 km southeast of Tawau. Block ND6 covers an area of about 8,700 sq km, while block ND7 has an area of about 17,000 sq km.
Under the terms of the PSCs, Shell and Petronas Carigali will jointly operate both blocks. Shell has 50% working interests; split between Sabah Shell Petroleum Co. Ltd. 40% and Shell Sabah Selatan Sdn Bhd 10%. Petronas Carigali, the exploration and production arm of Petronas, owns the remaining 50% interests.
For block ND6, the partners will acquire and process 1,700 sq km of new 3D seismic data and drill three wildcat wells. The minimum financial commitment for the block is $37 million.
For block ND7, the partners will acquire and process 800 sq km of new 3D seismic data and drill one wildcat. The minimum financial commitment for the block is $13 million.
Petronas had received highly competitive bid proposals for both blocks ND6 and ND7 from international petroleum companies, reflecting their confidence in the hydrocarbon prospects in the Tarakan basin as well as in the Malaysian deepwater areas southeast of Sabah.
03-01-05
