Malaysia's Petronas on Friday signed a Production Sharing Contract (PSC) with SK earthon and Petroleum Sarawak Exploration & Production Sdn. Bhd. (PSEP) for Block SK427 off the coast of Sarawak.
SK earthon, a subsidiary of South Korea’s SK Innovation is the operator of Block SK427 with 85 percent participating interest while PSEP, the Sarawak-owned oil and gas company, holds the remaining 15 percent.
Petronas, through MPM, manages petroleum arrangements in Malaysia and provides stewardship on upstream petroleum activities.
Signing on behalf of Petronas was Senior Vice President of Malaysia Petroleum Management (MPM) Mohamed Firouz Asnan, while SK earthon was represented by its Director and Head of Exploration & New Venture Office, Suntaek Bang, and PSEP by its Director and Chief Operating Officer, Dr James Foo.
According to Petronas, Block SK427 is located within the prolific area of Balingian and Tatau hydrocarbon provinces covering an area of 3,349 sq km.
"The block is situated in a proven hydrocarbon system and has promising hydrocarbon potential to be unlocked. Several significant hydrocarbon discoveries were made in 2021 in the Balingian province near the block, namely Sirung-1 and Hadrah-1 wells," Petronas said.
Petronas' Mohamed Firouz said, “We welcome SK earthon to Malaysia’s upstream industry and as a new player, they bring vast experience in exploration and production, garnered from their worldwide exploration activities. Petronas will also collaborate with SK earthon in the Carbon Capture and Storage sector, in line with PETRONAS’ aspiration to achieve Net Zero Carbon Emissions by 2050. "
SK427 PSC is one of the six blocks awarded from the Malaysia Bid Round 2021.
MBR is an annual Malaysia licensing round hosted by MPM which offers investors diverse upstream opportunities, including exploration acreages, discovered resource opportunities, and late-life producing assets.
The MBR 2022, offering 14 exploration blocks, six Discovered Resource Opportunities clusters, and one Late Life Asset cluster, was launched on January 27, and will run until June 30,2022.