PETRONAS offers 10 exploration blocks in Malaysia Bid Round 2023

(WO) – On Feb. 15, PETRONAS launched the Malaysia Bid Round 2023 (MBR 2023), offering 10 exploration blocks and two clusters of Discovered Resource Opportunities (DRO).

Themed “Winning the Energy Transition with our Advantaged Energy”, MBR 2023 saw the participation of more than 50 oil and gas companies, as well as government agencies, foreign trade attachés and energy market consultants. The annual event was also streamed live for potential partners in different parts of the world.

The 10 exploration blocks on offer are within the producing Malay, Sabah and Sarawak basins as well as the newly opened Penyu basin. These blocks cover various geological play settings with sizeable prospects to be explored, providing opportunities for investors looking for ‘Advantaged Energy’ – low cost, low carbon energy.

Also offered are the Chenang DRO cluster off the coast of Peninsular Malaysia and the Bambazon DRO cluster off the coast of Sabah. These are shallow water clusters located close to existing producing hubs that will enable quick monetization.

Earlier today, PETRONAS also signed Production Sharing Contracts (PSCs) for nine exploration blocks marketed under the MBR 2022 with the winning bidders consisting of four existing and four new investors. The PSCs were signed by the company’s Senior Vice President, in the presence of Executive Vice President and Chief Executive Officer of Upstream, Datuk Adif Zulkifli.

The Production Sharing Contracts include:

• PETRONAS Carigali Sdn Bhd (PCSB) and E&P Malaysia Venture Sdn Bhd (EPMV) for Block PM327
• Skye UMDP Exploration Bhd and PCSB for Block PM340
• PCSB, PTTEP Sarawak Oil Limited and Petroleum Sarawak EP (PSEP) for Block SK325
• PCSB and INPEX Malaysia E&P SK418 Sdn Bhd and PSEP for Block SK418
• PCSB and EPMV; and PSEP for Block SK328
• Longboat Energy (2A) Limited, Topaz Number One Ltd, PCSB and PSEP for Block 2A
• INPEX Malaysia E&P 4E Sdn Bhd, PCSB and PSEP for Block 4E
• Sarawak Shell Bhd, PCSB and PSEP for Block 3B
• PCSB and EPMV; and SMJ Sdn Bhd for Block SB409

Commenting on the PSCs signing, Firouz said, “The signings of the exploration PSCs today and the three DRO clusters PSCs signed last month represent the highest number of PSC awarded in Malaysia within a single year since 2010. The first of the nine PSCs signed today also marks the 200th PSC awarded by PETRONAS since the maiden PSC signed in 1976. We look forward to working very closely with our newly signed PSC partners in discovering new molecules, so that together we will grow and create value in a sustainable manner.”

The nine exploration PSCs are expected to see an investment amounting to RM1.7 billion ($0.39 billion) in exploration drilling capital, particularly in the deepwater areas and the underexplored formations. In addition, the award of these nine blocks has also reduced the number of Malaysia’s open blocks by about a third, in line with MPM’s efforts to increase exploration investments in the country.