Petronas, Pertamina and PetroVietnam sign PSC

Jun 16, 2003 02:00 AM

Malaysia's national oil and gas company Petronas has signed a production sharing contract with its Indonesian and Vietnamese counterparts Pertamina and PetroVietnam for joint exploration and development of hydrocarbon resources in Block SK305 offshore Sarawak. The deal, signed in Kuala Lumpur, adds to other blocks in the region taken up jointly by the trio under their tripartite cooperation agreement.
Under the terms of the PSC, the three parties have formed a joint venture company, PCPP Joint Operating, to operate the block, Petronas said. Petronas Carigali, a wholly-owned exploration and production subsidiary of the Malaysian company, has a 40 % equity in PCPP, while Pertamina and PetroVietnam Investment & Development hold 30 % each.

Block SK305 is located in water depth of 150 meters in the Balingian province offshore Sarawak. Covering an area of about 15,164 sq km, the block was operated by Shell until 1999.
Under the PSC signed, the operators are required to drill two firm and two optional exploration wells as well as acquire and process new 2D and 3D seismic data on the block. The minimum financial commitment for the block is Malaysian Ringgit 39 mm ($ 10.26 mm).

In January last year, the three counterparts were awarded two offshore exploration blocks in Vietnam, Blocks 10 and 11.1, operated by Con Son Joint Operating, whose equity holders are PIDC (40 %), Pertamina (30 %) and Petronas Carigali (30 %).
The tripartite cooperation arrangement is also meant to facilitate the transfer and exchange of knowledge and technology between the three partners which will assist in enhancing and upgrading of skills and expertise. After having secured exploration blocks in Vietnam and Malaysia, the three parties are now undertaking joint evaluation of acreages in Indonesia and expect to conclude a similar contract in the near future.

Source: Platts
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