Sapura E&P wins Mexican contract

By ALIFAH ZAINUDDIN / Graphic By TMR

Sapura Energy Bhd’s wholly-owned subsidiary, Sapura Exploration and Production Sdn Bhd (Sapura E&P), has signed a production sharing contract (PSC) for work on Block 30 in the Gulf of Mexico.

Sapura Energy president and group CEO Tan Sri Shahril Shamsuddin, who represented the company in New Mexico, said the group is proud to be the only Malaysian-owned company to be awarded the bidding round, along with its partners.

“This is a significant mile-stone for Sapura Energy Group in reinforcing our position in the industry, establishing our presence in Mexico and growing our E&P portfolio.”

Sapura E&P and its consortium partners — DEA Deutsche Erdoel AG and Premier Oil plc — outbidded six others for the prolific hydrocarbon block in a recently concluded shallow water bid round. The bidding agreement with DEA and Premier is based on an equity split of 40% for DEA, Sapura Energy 30% and Premier 30%.

In a statement last Friday, the integrated oil and gas services and solutions provider said the PSC was signed with the Mexico’s Comision Nacional De Hidrocarburos (CNH) or the National Hydrocarbon Commission on June 27.

Also present at the signing ceremony were the Secretary of Energy Pedro Joaquín Coldwell and CNH commis- sioner president Juan Carlos Zepeda Molina.

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, Mexico’s state-owned oil company, on a number of offshore projects.

“We thank our partners for their confidence in our capabilities and are confident that our partnership will set a strong foundation for our Mexican ventures. Both our partners have proven operating experience globally, which augurs well for the consortium,” Shahril said.

A number of material leads and prospects have been identified within Block 30 in the tertiary clastic plays, typical of the Sureste Basin and in which Premier made the world-class Zama discovery in July 2017.

The main prospect exhibits direct hydrocarbon indicators on the existing 3D seismic across the southern edge of Block 30, significantly de-risking a potentially material oil play there. These anomalies are similar to those seen at the Zama and Amoca oil fields.

The work plan is to acquire 3D seismic data in 2019 before identifying drilling locations in 2020.

The announcement came a week after the group was awarded nine new contracts worth RM1.8 billion, bringing Sapura Energy’s accummulative value in contract wins to date to RM4.5 billion.

The group, through its wholly owned subsidiaries, will be executing several jobs across the upstream value chain locally, as well as in Australia, India and Mexico.