PETRONAS has awarded a Production Sharing Contract (PSC) for Block SB311 offshore Sabah to a partnership of ConocoPhillips Sabah Gas Ltd., Shell Energy Asia Limited and PETRONAS Carigali Sdn Bhd.
The block, measuring 1,046 square kilometres, is located in the central part of the Sabah Basin in water depths ranging from 50 to 100 metres. The area is located within a proven hydrocarbon fairway with key discoveries such as Kebabangan, Kinarut, and Erb West.
Under the terms of the PSC, ConocoPhillips will operate the block with a participating interest of 40 per cent. PETRONAS Carigali and Shell Energy Asia will each own a 30 per cent interest in the block.
For the SB311 PSC, the partners are committed to drill two wildcat wells, acquire 400 line km of new 2D seismic data and re-process existing 3D seismic data on the block.
The PSC was signed late yesterday at the PETRONAS Twin Towers in Kuala Lumpur. PETRONAS was represented by its Executive Vice President of Exploration and Production Business Dato’ Wee Yiaw Hin and ConocoPhillips by its President of ConocoPhillips Asia Pacific Joseph P. Marushack.
The other two partners, Shell Energy Asia Pacific and PETRONAS Carigali were respectively represented by its Vice President Malaysia & Chairman Shell Malaysia, Iain Lo and PETRONAS Vice President & Chief Executive Officer of PETRONAS Exploration, Encik Effendy Cheng Abdullah.
[mappress] December 13, 2012