State-owned Petronas has signed a production sharing contract (PSC) with SK earthon Co. and Petroleum Sarawak Exploration & Production (PSEP) for Block SK427 off the coast of Sarawak, the company said on April 22.
SK earthon, a wholly-owned subsidiary of South Korea’s SK Innovation Co. is the operator of Block SK427 with 85% participating interest while PSEP, the Sarawak-owned oil and gas company, holds the remaining 15%. SK427 PSC is one of the six blocks awarded from the Malaysia Bid Round (MBR) 2021.
Block SK427 is located within the Balingian and Tatau hydrocarbon provinces covering an area of 3,349 km2. “The block is situated in a proven hydrocarbon system and has promising hydrocarbon potential to be unlocked,” Petronas said.
MBR is an annual Malaysia licensing round that offers investors upstream opportunities, including exploration acreages, discovered resource opportunities and late-life producing assets. The MBR 2022 was launched on January 27, offering 14 exploration blocks, six clusters of discovered resource opportunities and one late life asset cluster.
Petronas said it will also collaborate with SK earthon in the carbon capture and storage sector, in line with its aspiration to achieve net-zero carbon emissions by 2050.