SARAWAK has taken a major stride for the control of its oil and gas resources by awarding a new oil exploration and prospecting (E&P) licence to Petra Energy Development Sdn Bhd.

The licence, awarded by state-owned Petroleum Sarawak Bhd (Petros), is for exploration and prospecting for an onshore block in the Miri-Marudi area in the northern part of the state.

The Chief Minister’s Office, in a statement to endorse the conditional award, said awarding the licence is a historic milestone as it signifies the “operationalisation of the state government’s control of oil mining and exploration in all the onshore areas of the state”.

It said the power to award the E&P licence – previously by Petronas – to Petros is pursuant to the Commercial Settlement Agreement between the state government and national petroleum company that was signed on December 7 last year.

“This is a significant milestone for Sarawak as we look forward to the resumption of active exploration and production activities onshore,” it said.

“After a lapse of several years, Petros, as the state-owned petroleum company, will be the one-stop centre… playing the role of resource regulator and manager.”

Petra Energy Development is a wholly owned subsidiary of Petra Energy.

The E&P licence to Petra and its joint-venture partner, Uzma Engineering Sdn Bhd, a wholly owned subsidiary of Uzma Bhd, is to make an early appraisal and production of the two wells that have already been drilled in the 3,765sq km block, Adong Kecil and Discovery West .

It is also to conduct studies and gather data on the block to “delineate the block for future oil mining licence”.

Petros has said the block has potential as a proven petroleum system exists, as evidenced by the presence of producing fields surrounding it.

The SK433 block is believed to be an onshore extension of the prolific Baram Delta field. – June 18, 2021.