KUALA LUMPUR (June 29): Sapura Energy Bhd's unit Sapura Exploration and Production (Sapura E&P) and its joint venture consortium partners, DEA Deutsche Erdoel Mexico and Premier Oil, have signed a production sharing contract (PSC) for Block 30 with Comision Nacional De Hidrocarburos of Mexico (CNH).

In a statement today, Sapura Energy said the PSC was signed on June 27.

Sapura Energy described Block 30, within the Sureste Basin, as a proven and prolific hydrocarbon province in the Gulf of Mexico.

The company said it is located in shallow waters of about 70 metres deep, directly to the south west of Premier's world-class Zama discovery and to the north of the Amoca oil field.

The consortium had outbid six other bidders for this most contested block during the recently concluded shallow water bid round.

Sapura E&P entered into the bidding agreement with DEA and Premier based on an equity split of 40% for DEA, 30% for Sapura Energy and 30% for Premier.

Sapura Energy president Tan Sri Shahril Shamsuddin said the group was proud to be the only Malaysian-owned company to be awarded during this bidding round, together with its partners.

"This is a significant milestone for Sapura Energy Group in reinforcing our position in the industry, establishing our presence in Mexico and growing our E&P portfolio," he said.

Sapura Energy said the shallow water operating conditions within Block 30 are similar to Malaysia where Sapura E&P is well recognised.

The company said it has been operating in Mexico since late 2012 and has worked closely with PEMEX on a number of offshore projects, which brings familiarity to local commercial conditions in Mexico.

At 2.17pm, shares of Sapura Energy were traded at 65 sen with 34.62 million shares done.