Petronas Strengthens Partnership With TotalEnergies and Shell Through New PSC

The partners will explore Block 2K, an ultradeepwater block off Sabah.

Petronas Towers, Kuala Lumpur, Malaysia.
Petronas Towers, Kuala Lumpur, Malaysia.
Getty Images

Petronas has signed a production-sharing contract (PSC) with TotalEnergies EP Malaysia, Petronas Carigali Sdn Bhd (PCSB), Sabah Shell Petroleum Company Limited (SSPC), and Shell Sabah Selatan Sdn Bhd (SSS) for Block 2K, an ultradeepwater block located off the coast of Sabah. Block SB 2K, with depths up to 3000 m, covering 1952 km2, is in the northwest ultradeepwater area within a proven hydrocarbon basin.

Under the PSC terms, TotalEnergies will be the operator with a 34.9% participating interest. PCSB holds a 40% participating interest while the remaining 25.1% is equally split between the other two partners, SSPC and SSS.

The signing of the PSC for Block 2K completes the licensing of the five ultradeepwater 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 blocks in 2022 and 2023.