KUALA LUMPUR, Malaysia – Petronas has awarded block SK437 offshore Sarawak, Malaysia, to a consortium comprising Sarawak Shell, Petronas Carigali, and Petroleum Sarawak Exploration and Production (PSEP), a subsidiary of Petros.
The 2,015-sq km (778-sq mi) concession, in water depths of up to 50 m (164 ft), is southwest of the prolific Central Luconia province.
Petronas expects the award to provide a boost to exploration off Sarawak.
Sarawak Shell will operate with an 85% interest: Petronas Carigali and PSEP will each hold 7.5%, with both companies carried during the exploration phase.
This also represents PSEP’s first involvement in an offshore exploration production-sharing contract: the company currently participates in producing PSCs for the MLNG and Kumang Cluster.
SK437 adds to Shell’s existing stakes in 15 PSCs in Malaysia, of which eight are offshore Sarawak and seven offshore Sabah.
Petronas added that bids remain open for the Malaysia Bid Round 2021, with a submission deadline of Sept. 3.