Petronas Awards Seven New PSCs for Six Offshore Blocks in Malaysia

Malaysia’s Petronas has awarded Production Sharing Contracts (PSCs) for six exploration blocks and one Discovered Resource Opportunities (DRO) cluster under the Malaysia Bid Round 2023.

The awards are expected to garner more than $275 million (RM 1.3 billion) worth of capital investment to Malaysia in the form of exploration work activities.

The seven new PSCs were awarded to Petronas Carigali, E&P Malaysia Venture (EPMV), Petroleum Sarawak Exploration & Production (PSEP), SMJ Energy, Inpex Malaysia E&P (INPEX), PT Pertamina Malaysia Eksplorasi Produksi (Pertamina), Jadestone Energy, Sarawak Shell (Shell), and E&P O&M Services (EPOMS).

The blocks under the PSCs span across three regions in offshore Malaysia comprising two blocks in offshore Peninsular Malaysia, three blocks off the coast of Sarawak, as well as one exploration block and one DRO cluster situated off the coast of Sabah.

The awarded PSCs and blocks in Malaysia Bid Round 2023 are as follows:

• Petronas Carigali and EPMV for Block PM342
• Jadestone Energy and Petronas Carigali for Block PM428
• Petronas Carigali, EPMV and PSEP for Block SK330
• Petronas Carigali, Inpex, Pertamina and PSEP for Block SK510
• Shell, Petronas Carigali and PSEP for Block 5E
• Petronas Carigali, EPMV and SMJ Energy for Block SB403
• EPOMS for Bambazon Cluster

Petronas also launched the Malaysia Bid Round 2024, offering five exploration blocks and five clusters of DRO to potential investors, with the bid deadline submission set for August 1, 2024.

The five exploration blocks are located in emerging basins namely Langkasuka Basin in the Straits of Melaka, Semporna and Sandakan Basins off the eastern coast of Sabah, where the newly acquired multi-client data improves the subsurface imaging and offers a fresh look at multiple geological plays with large potential.

Additionally, the three DRO clusters offered are within shallow waters of Peninsular Malaysia and Sabah, and the two DRO clusters are within the deepwater realm of Sabah, located nearby existing facilities and enabled for quick monetization.

“With these awards, all exploration blocks offshore Sarawak Basin and Northwest Sabah Basin have been fully licensed. Similarly in Peninsular Malaysia, we are pleased to see the ever-growing demand in its proven basins, which are supported by well-established and easily accessible infrastructure," said Bacho Pilong, Petrona's representative at the award ceremony held in Kuala Lumpur.

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