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KUALA LUMPUR, Feb 19 -- Petroliam Nasional Bhd (Petronas) has awarded Block SB405, off the coast of Sabah, offshore Malaysia, to ConocoPhillips East Malaysia Ltd (COPEM) a subsidiary of ConocoPhillips and Petronas Carigali Sdn Bhd (PCSB).
In a statement, Petronas said the award is expected to bolster exploration activities off the coast of Sabah following the opening of more block investment opportunities in the country.
The Production Sharing Contract (PSC) was signed today.
Petronas, PCSB and COPEM were represented by Malaysia Petroleum Management senior vice president, Mohamed Firouz Asnan; Exploration, Upstream vice president, Emeliana Rice-Oxley; and COPEM president, Erik Keskula, respectively.
Petronas said COPEM is the operator for Block SB405 PSC, with a participating interest of 85 per cent, while PCSB holds the remaining 15 per cent.
"SB405 is the new addition to COPEM’s existing interests in five PSCs in Malaysia, which are Block J, G and Kebabangan located off the coast of Sabah and SK304 and WL4-00 located off the coast of Sarawak," it said.
According to Mohamed Firouz, the entry of COPEM with its world class proprietary seismic technology into Block SB405 is expected to enhance the hydrocarbon resource potential off the coast of Sabah.
“This is an area that has a proven working petroleum system with previous discoveries such as Kuda Terbang and Nymphe fields and at the same time, the new investment of COPEM in Block SB405 represents enhanced confidence of foreign investors in the upstream sector in Malaysia,” he said.
He said the partnership with PCSB provides the winning combination to support potential development of the resource within the North East Sabah basin area upon successful commercialisation of the discoveries.
"Under its right asset, right player strategy, we hope to unlock the full potential of the hydrocarbon resources in Malaysia towards successfully delivering clean and reliable energy to our customers in Malaysia and abroad,” he added.
Block SB405 is located in the North East Sabah basin, off the coast of Sandakan, with an area size of 5,857 sq kilometres and in water depth of up to 100 metres.