KUALA LUMPUR (Dec 4): Petroliam Nasional Bhd (Petronas) has awarded the production sharing contract (PSC) for Block PM409 offshore Peninsular Malaysia to EnQuest PLC's wholly-owned subsidiary EnQuest Petroleum Production Malaysia Ltd and Petronas Carigali Sdn Bhd (PCSB) as part of the 2019 Malaysia Bidding Round, according to separate statements from EnQuest and Petronas.
EnQuest said today in a statement on its website that under the terms of the PSC, EnQuest will operate the block with a participating interest of 85%, with PCSB owning the remaining 15%.
"Block PM409 measures approximately 1,700 km2 and is located offshore Peninsular Malaysia in water depths of 70 to 100 metres. The block is in a proven hydrocarbon area containing several undeveloped discoveries and is contiguous to the group's existing PM8/Seligi PSC, providing low-cost tie-back opportunities to the group's existing Seligi main production hub.
"Within the initial four-year exploration term of the PSC, the partners are committed to the drilling of one well," EnQuest said.
EnQuest chief executive Amjad Bseisu said in the statement that the block contains several undeveloped discoveries, which will provide future opportunities for EnQuest to demonstrate its proven capabilities in low-cost drilling and near-field development.
EnQuest is an independent oil and gas (O&G) production and development company listed on the London and Stockholm stock exchanges, according to its statement.
Petronas said in a statement on its website the PSC and joint operating agreement for Block PM409 was signed here yesterday.
Signing on behalf of Petronas was its senior vice president of Malaysia petroleum management Mohamed Firouz Asnan while EnQuest was represented by its managing director John Penrose, according to Petronas.
Petronas said PCSB was represented by its vice president of exploration Emeliana Rice-Oxley.
In the statement, Mohamed Firouz was quoted as saying at the event that the signing will continue to contribute towards the sustainability of Malaysia's upstream O&G industry.
"The effort to sustain Malaysia's petroleum as a vibrant industry can only be achieved through effective collaborations with partners with unique value propositions made possible through the innovative PSC models offered by Petronas," he said.
According to Petronas' statement, the Malaysia Bidding Round is an annual event organised by Petronas to market the country's O&G acreages to existing and new players, which have the capability to unlock the potential of the nation's hydrocarbon resources.