PETRONAS has signed a Production Sharing Contract (PSC) with TotalEnergies EP Malaysia (TotalEnergies), PETRONAS Carigali Sdn Bhd (PCSB), Sabah Shell Petroleum Company Limited (SSPC) and Shell Sabah Selatan Sdn Bhd (SSS) (Shell) for Block 2K, an ultra-deepwater block located off the coast of Sabah.

Block SB 2K, with depth up to 3,000 metres, covering 1,952 sq km is located in the prolific north-west ultra-deepwater area within a proven hydrocarbon basin with promising hydrocarbon potential.

Under the PSC terms, TE, a wholly owned subsidiary of France-based TotalEnergies SE, will be the operator with a 34.9 per cent participating interest. PCSB holds a 40 per cent participating interest while the remaining 25.1 per cent is equally split between the other two partners, SSPC and SSS.

Signing the PSC on behalf of PETRONAS was Senior Vice President of Malaysia Petroleum Management (MPM), Mohamed Firouz Asnan, while TOtalEnergies was represented by its General Manager, Exploration and Production Malaysia, Xavier Faugeras. PCSB was represented by Vice President Exploration, Mohd Redhani Abdul Rahman, SSPC by its Finance Manager, Upstream Malaysia, Hilmi Yusof and SSS by its General Manager, Sabah Deepwater, Upstream Malaysia, Prithipal Singh.

Mohamed Firouz said, “The signing of the PSC for Block 2K completes the licensing of the five ultra-deepwater blocks off the coast of Sabah, along the newly identified Oligo-Miocene carbonate trend proven by Tepat-1 oil discovery in Block N in 2018. Block 2V was signed last year followed by Blocks 2W and X early this year.”

“A total of four wells are expected to be drilled in these ultra-deepwater blocks in 2022 and 2023, to explore within this emerging hydrocarbon province,” he added.

These five blocks now come with available 3D seismic data from a recent mega multi-client survey, which will accelerate exploration drilling programmes. Additional data is also available through PETRONAS myPROdata at https://myprodata.petronas.com.

PETRONAS, through MPM, manages petroleum arrangements in Malaysia and provides stewardship on upstream petroleum activities.

About Petronas

Established in 1974, Petroliam Nasional Berhad (PETRONAS) is a global energy and solutions company, ranked amongst the largest corporations on Fortune Global 500®️. As an integrated global LNG producer with over 37 years of experience, PETRONAS provides an uninterrupted supply of LNG to more than 25 countries around the world. PETRONAS has safely delivered more than 11,000 cargoes globally, sourced from its portfolio of facilities located in Malaysia, Australia and Egypt. PETRONAS is also the first global energy player to introduce the floating LNG concept in 2016, the PFLNG SATU, and introduced its deep-water FLNG, the PFLNG DUA, in 2021.

About TotalEnergies

TotalEnergies is a broad energy company that produces and markets energies on a global scale: oil and biofuels, natural gas and green gases, renewables and electricity. Our 105,000 employees are committed to energy that is ever more affordable, clean, reliable and accessible to as many people as possible. Active in more than 130 countries, TotalEnergies puts sustainable development in all its dimensions at the heart of its projects and operations to contribute to the well-being of people.

About Shell plc

Shell is a global group of energy and petrochemical companies that aims to meet the world’s growing need for more and cleaner energy solutions in ways that are economically, environmentally and socially responsible.