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December 23, 2021

Petronas awards six exploration blocks under Malaysia Bid Round 2021

Petronas offered a total of 13 offshore exploration blocks to potential firms, under the bidding round.

By Archana Rani

Malaysia’s Petronas has awarded six offshore blocks to undisclosed firms under the Malaysia Bid Round (MBR) 2021, to explore and monetise hydrocarbon resource potentials in the country.

The six blocks that have been awarded include Blocks SB412, 2W, X, SK427, SK439 and SK440.

These blocks are subject to the signing of the production sharing contracts (PSCs) that are anticipated by the first quarter of 2022.

A total of 13 offshore exploration blocks were offered under the MBR 2021, which was themed “Grow Your Energy Portfolio With Us” and was virtually launched on 26 February 2021.

Of the 13 blocks that were on offer, three blocks are situated in the Malay basin, four in the Sabah basin and the remaining six in Sarawak basin.

Petronas Malaysia petroleum management senior vice-president Mohamed Firouz Asnan said: “These awards further reinforce Malaysia’s attractiveness as a destination for industry players seeking to grow their energy portfolio and thrive in the energy transition.

“Under our right asset, right player strategy, supported by a progressive fiscal regime, we hope to fully maximise the long-term value of the hydrocarbon resources in Malaysia sustainably, at the time when demand is expected to increase.”

Petronas earlier said it has introduced three production sharing contract (PSC) terms for MBR 2021. These include enhanced profitability PSC terms (EPT), new small field assets (SFA) and late-life assets (LLA) PSC terms.

In a press statement, Petronas said: “The success of MBR 2021 campaign is mainly attributed to the significant enhancements that were introduced, such as the Enhanced Profitability PSC Terms for shallow water blocks, larger block sizes and flexible bidding options.”

Malaysia’s oil and gas company plans to launch MBR 2022, themed, “Your Advantaged Energy Is Here”, in early next.

Earlier this year, Petronas LNG, a subsidiary of Petronas, signed $7bn ten-year deal to supply LNG to China National Offshore Oil Corporation’s (CNOOC) subsidiary CNOOC Gas and Power Trading & Marketing.

Petronas LNG agreed to supply 2.2 million tonnes per annum of LNG that is indexed to a combination of the Brent and Alberta Energy Company (AECO) indices.

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