Japanese Oil and Gas Firm Enters Two Blocks off Malaysia

Thursday, June 19, 2025

Idemitsu Kosan Co has acquired interests in two oil and gas blocks located off the coast of Sarawak in Malaysia from South Korean SK earthon, and signed production sharing contracts (PSC) for the developments.

The acquired interests are for the Block SK427, awarded under Malaysia Bid Round (MBR) 2021, and the Ketapu Cluster, awarded under MBR Plus Round I.

Idemitsu acquired 40% stake, and as a result, the company secured the right to explore, develop, and produce oil and natural gas in the blocks proportionate to its participating interests.

The PSC for the blocks was signed with Petroliam Nasional Berhad (PETRONAS), a national oil company in Malaysia, Petroleum Sarawak Exploration and Production, a subsidiary of Petroleum Sarawak Berhad (PETROS), a state-owned oil and gas company in Sarawak PSEP,  and SK earthon.

Two acquired blocks off Malaysia (Credit: Idemitsu Kosan Co)

Idemitsu is currently conducting oil and gas upstream business in Vietnam and Norway as our main focus areas.

“We expect that this acquisition in Sarawak, Malaysia, where multiple oil and gas fields have been discovered and developed historically to serve as a foothold for us to establish a new core.

“In the blocks participated in this time, several promising structures have been identified by the subsurface data acquired in 2023, and Idemitsu will continue to contribute to mature the possibility towards the development phase through collaboration with its partners in the evaluation and drilling of exploration wells,” Idemitsu said.

Idemitsu conducted the acquisition via its subsidiary Idemitsu Sarawak E&P. With respect to the exploration project expenditure of the interests, Idemitsu Sarawak plans to receive an investment from the Japan Organization for Metals and Energy Security covering up to 50% of the expenditure that Idemitsu Sarawak will bear in the future.

“By participating in the blocks in Malaysia, in which PETRONAS is also providing cooperation, we aim to further expand oil and gas upstream activities using the blocks as a foothold while also actively attempting and pursuing carbon-neutral initiatives in the region, including carbon capture and storage (CCS),” Idemitsu said.

SK earthon is the operator of both blocks with 45% working interest, with partners PSEP and now Idemitsu Sarawak holding 15% and 40% in the developments, respectively.

Categories: Mergers & Acquisitions Industry News Activity Asia Oil and Gas

Related Stories

Woodside Finds South Korean Partners to Advance LNG Value Chain

PTTEP Hires Energy Drilling’s Rig for Southeast Asia Offshore Job

Yinson Production Secures $1.17B Refinancing for FPSO Maria Quitéria

Centrica and Thailand’s PTT Ink Long-Term LNG Supply Deal

Petrovietnam, Partners Sign PSC for Block Off Vietnam

CNOOC Signs Hydrocarbons Exploration and Production Deal with Kazakhstan

Woodside and Jera Agree LNG Cargoes Supply for Japan’s Winter Period

Petronas Expands Suriname Portfolio with Deepwater Block Acquisition

Petronas-Eni Upstream Joint Venture to Take Up to Two Years to Set Up

BP Expands Oil and Gas Scope in Azerbaijan with New Projects and Exploration Rights

Current News

Woodside Finds South Korean Partners to Advance LNG Value Chain

Valeura Makes Progress with Multi-Well Drilling Campaign in Gulf of Thailand

Santos and QatarEnergy Agree Mid-Term LNG Supply

PTTEP Hires Energy Drilling’s Rig for Southeast Asia Offshore Job

One Shelf Drilling Rig Up for New Job in India, Other for Disposal

Four Jack-Up Drilling Rig Deals Set to Bring In $129M for Borr Drilling

PTTEP Hires Velesto’s Jack-Up Rig for Drilling Campaign off Malaysia

Yinson Production Secures $1.17B Refinancing for FPSO Maria Quitéria

Centrica and Thailand’s PTT Ink Long-Term LNG Supply Deal

Petrovietnam, Partners Sign PSC for Block Off Vietnam

Subscribe for AOG Digital E‑News

AOG Digital E-News is the subsea industry's largest circulation and most authoritative ENews Service, delivered to your Email three times per week

https://accounts.newwavemedia.com