Petronas Carigali, Shell And Petroleum Sarawak Awarded New Block

National oil and gas company, Petronas has awarded the new Block SK437 offshore in Sarawak to be shared by three parties, namely Petronas Carigali, Sarawak Shell Berhad and Petroleum Sarawak Exploration and Production which is a wholly-owned subsidiary of Petroleum Sarawak Berhad.

Block SK437 is located to the southwest of the prolific Central Luconia province, measuring 2,015 square kilometres in size and in water depths of up to 50 metres. The award of this block is expected to bolster exploration activities in the country and in particular off the coast of Sarawak.

Petronas Senior Vice President of Malaysia Petroleum Management Mohamed Firouz Asnan said, “During its 130 years in Malaysia, Shell and other partners have built a legacy of milestones that contribute to the success of the country’s oil and gas industry. It is our hope that this new partnership with PSEP and PCSB in Block SK437 would bring the industry to greater heights through complementary strengths and capabilities.

“We also welcome PSEP’s first involvement in an offshore exploration PSC, expanding its current portfolio with participating interests in producing PSCs of MLNG and Kumang Cluster.

“Indeed, this new award is a further testament of Malaysia’s attractiveness as a global investment destination. Under our ‘right asset, right player’ strategy, supported by a progressive fiscal regime, we hope to unlock the full potential of the hydrocarbon resources in Malaysia, thus maximising value for our partners and PETRONAS as the custodian of the national hydrocarbon resources.”

SSB is the operator for Block SK437 PSC, with 85 per cent participating interest, while PCSB and PSEP hold 7.5 per cent each. Both PCSB’s and PSEP’s interests are carried during the exploration phase. SK437 is a new addition to Shell’s existing interests in 15 PSCs in Malaysia, of which eight are located off the coast of Sarawak, whilst the remaining seven are located off the coast of Sabah.

Potential investors seeking to invest in Malaysia are welcomed to participate in the Malaysia Bid Round 2021 which is currently ongoing with the bid submission deadline set on 3 September 2021.

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