Petronas Carigali, Sarawak Shell, Petros’ unit get Block SK437

Wage growth could be lower or zero during the crisis, and the unemployment rate could be higher than any other period, says minister

by S BIRRUNTHA

PETROLIAM Nasional Bhd (Petronas) has awarded Block SK437 production sharing contract (PSC) offshore Sarawak to Petronas Carigali Sdn Bhd, Sarawak Shell Bhd and Petroleum Sarawak Exploration and Production Sdn Bhd (PSEP).

PSEP is a wholly-owned subsidiary of Petroleum Sarawak Bhd (Petros).

In a statement yesterday, the national oil company said Block SK437 is located to the southwest of the prolific Central Luconia Province, measuring 2,015 sq km in size and in water depths of up to 50m.

The group said the PSC was signed virtually yesterday and it is expected to bolster exploration activities in the country and in particular off the coast of Sarawak.

Petronas Malaysia Petroleum Management senior VP Mohamed Firouz Asnan said during its 130 years in Malaysia, Shell and other partners have built a legacy of milestones that contribute to the success of the country’s oil and gas industry.

He hopes that this new partnership with PSEP and Petronas Carigali in Block SK437 would bring the industry to greater heights through complementary strengths and capabilities.

“We also welcome PSEP’s first involvement in an offshore exploration PSC, expanding its current portfolio with participating interests in producing PSCs of Malaysia LNG Sdn Bhd and Kumang Cluster.

“Indeed, this new award is a further testament of Malaysia’s attractiveness as a global investment destination,” Mohamed Firouz said in a statement yesterday.

He said, under the group’s “right asset, right player” strategy, supported by a progressive fiscal regime, the company hopes to unlock the full potential of the hydrocarbon resources in Malaysia, thus maximising value for its partners and Petronas as the custodian of the national hydrocarbon resources.

Sarawak Shell is the operator for Block SK437 PSC, with 85% participating interest, while Petronas Carigali and PSEP hold 7.5% each.

Both Petronas Carigali and PSEP’s interests are carried during the exploration phase.

SK437 is a new addition to Shell’s existing interests in 15 PSCs in Malaysia, of which eight are located off the coast of Sarawak, while the remaining seven are located off the coast of Sabah.

Meanwhile, Petronas said potential investors seeking to invest in Malaysia are welcomed to participate in the Malaysia Bid Round 2021, which is currently ongoing with the bid submission deadline set on Sept 3, 2021.

Investors can visit https://www.petronas. com/mpm/ for more information on investment opportunities in Malaysia.