Japan’s ENEOS Xplora, through its subsidiary ENEOS Xplora Malaysia, has signed an extension of production sharing contract (PSC) with Petronas for a block located off the coast of Sarawak in Malaysia.
The PSC extension is for the block SK10 and will run for ten years, from 2028 to 2038.
SK10 PSC was awarded to ENEOS Xplora Malaysia and Petronas in 1987, with Xplora Malaysia appointed as the operator. ENEOs Xplora Malaysia holds 78.7% working interest in the block, with partners INPEX Corporation and Mitsubishi Corporation having a 15.0% and 6.3% share.
The first production started in 2003 from the Helang field. Since then, ENEOS Xplora Malaysia has enhanced the production through a series of development activities, which led to production from the Layang and Beryl fields in 2017 and 2018 respectively.
Natural gas produced from SK10 PSC is supplied to the liquefaction plant in Sarawak, where it is processed into liquefied natural gas (LNG) and exported to East Asian countries including Japan.
The LNG volume from the Block accounts for approximately 4% of Japan's total annual LNG imports, making SK10 PSC a significant contributor to the region’s stable energy supply.
With this extension, Xplora Malaysia will continue its role as operator, advancing development and production activities in SK10 PSC.
“Leveraging our extensive experience and operational expertise, we aim to maximize the value of SK10 PSC and contribute to a stable energy supply for East Asian countries including Japan,” ENEOS Xplora Malaysia said.