Oil and gas production and development firm EnQuest has secured Block PM409 production sharing contract (PSC) offshore Peninsular Malaysia from Petronas.
EnQuest’s wholly owned subsidiary EnQuest Petroleum Production Malaysia (EnQuest) has secured the PSC in partnership with Petronas Carigali (PCSB), as part of the 2019 Malaysia Bidding Round. The companies have signed the PSC and joint operating agreement (JOA) for the block. EnQuest will operate the block with 85% participating interest, while PCSB owns the remaining 15%.
EnQuest chief executive Amjad Bseisu said: “We are delighted to have been awarded the Block PM409 PSC and to expand our presence in Malaysia.
“The block contains several undeveloped discoveries providing future opportunities for EnQuest to demonstrate its proven capabilities in low-cost drilling and near-field development.”
Situated in water depths of 70m to 100m, Block PM409 measures approximately 1,700km² and is located in a proven hydrocarbon area. It contains several undeveloped discoveries and is contiguous to the Petronas’ existing PM8/Seligi PSC.
The offshore block also provides low-cost tie-back opportunities to Petronas’ existing Seligi main production hub. Within the first four-year exploration term of the contract, the partners plan to conduct drilling of one well.
Petronas Malaysia Petroleum Management senior vice-president Mohamed Firouz Asnan said that the agreement would contribute towards the upstream industry sustainability in Malaysia.
Asnan further added: “The effort to sustain Malaysia’s petroleum as a vibrant industry can only be achieved through effective collaborations with partners with unique value propositions made possible through the innovative PSC models offered by Petronas.”