PETRONAS today announced that it has signed a production sharing contract (PSC) with TotalEnergies EP Malaysia (TE), Petronas Carigali Sdn Bhd (PCSB), Sabah Shell Petroleum Company Ltd (SSPC), and Shell Sabah Selatan Sdn Bhd (SSS) for Block 2K, an ultra-deepwater block located off the coast of Sabah.
The block with a depth of up to 3,000 metres, covering 1,952 sq km, is located in the prolific northwest ultra-deepwater area within a proven hydrocarbon basin with promising hydrocarbon potential.
Under the PSC terms, TE, a wholly owned subsidiary of France-based TotalEnergies SE, will be the operator with a 34.9% participating interest. PCSB holds the 40% of participating interest while SSS and SSPC holds the remaining 25.1% with equally split equity.
Signing the PSC on behalf of PETRONAS was Senior Vice President of Malaysia Petroleum Management (MPM), Mohamed Firouz Asnan, while TE was represented by its General Manager, Exploration and Production Malaysia, Xavier Faugeras. Meanwhile, PCSB was represented by Vice President Exploration, Mohd Redhani Abdul Rahman, SSPC by its Finance Manager, Upstream Malaysia, Hilmi Yusof and SSS by its General Manager, Sabah Deepwater, Upstream Malaysia, Prithipal Singh.
According to Mohamed Firouz, 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.
Source: PETRONAS
