A UNIT of the fledgling state-owned oil company, Petroleum Sarawak Bhd (Petros), has been jointly awarded a production sharing contract (PSC) for the offshore SK437 gas field with Sarawak Shell Bhd (SSB) and Petronas Carigali Sdn Bhd (PCSB).

The participating interest of Petroleum Sarawak Exploration and Production Sdn Bhd (PSEP) in the 2,015 sq km concession is 7.5%, according to a Petros statement today. 

PSEP is a wholly owned subsidiary of Petros. 

Petronas Carigali’s interest is 7.5%, with SSB, being the operator of the PSC, holding the majority stake of 85%. 

Block SK437 is located in the southwest of the prolific Central Luconia province, off the rural town of Balingian and in water depths of up to 50 metres. 

In the virtual PSC signing, PSEP was represented by Petros group chief executive officer Sauu Kakok, PSEP director and executive vice-president (upstream) James Foo and its vice-president of exploration (upstream) Emeliana Rice-Oxley, while Petronas was represented by its senior vice-president (petroleum management) Mohamed Firouz Asnan. 

Shell was represented by its Malaysia chairman, Ivan Tan. 

Besides the PSC, PSEP also holds interests in MLNG Satu PSC and Kumang Cluster PSC ventures with 20% and 50% stake respectively. 

Kakok said the company’s participation in the SK437 PSC will provide an opportunity for PSEP to expand its role in exploration activities off the coast of Sarawak. 

“The addition of exploration block SK437 PSC to our existing producing ventures, MLNG PSC and Kumang Cluster PSC, further diversifies PSEP portfolio of assets off the coast of Sarawak,” he said.

“We look forward to close collaboration with our operating partners to maximise the value of the PSCs.”  

Petros was formed on August 7, 2017 as part of Sarawak’s move to reassert its authority on its oil and gas resources. – July 28, 2021.