Petronas awards offshore blocks in push to maximise value of Malaysian hydrocarbon resources

Malaysian oil and gas player Petronas has awarded 6 of the 13 offshore exploration blocks offered in the recently concluded Malaysia Bid Round (MBR) 2021.

MBR is an annual Malaysia licensing round organised by Petronas, which offers investors diverse upstream opportunities, including exploration blocks, undeveloped discovered resources, and late-life assets.

Petronas said on Wednesday that the six blocks, awarded to both existing and new players, are Blocks SB412, 2W, X, SK427, SK439 and SK440. These awards are subject to the signing of the Production Sharing Contracts (PSCs) between the relevant parties by the first quarter of 2022.

The MBR 2021 themed “Grow Your Energy Portfolio With Us” was virtually launched on 26 February 2021, with over 250 potential and existing investors streaming live from North America, Europe, and Asia Pacific.

According to Petronas, the success of the 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.

Petronas Senior Vice President of Malaysia Petroleum Management 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.”

MBR 2022 themed, “Your Advantaged Energy Is Here” will be launched early next year offering more opportunities for potential investors.

In recent company news, Petronas and TotalEnergies revealed late last week they had increased their asset portfolio and production in the pre-salt Santos Basin, following successful bids on oil fields, operated by Petrobras.

Petronas acquired a 21 per cent non-operated interest in the Sépia field during the bidding round, while TotalEnergies managed to obtain 22.5 per cent non-operated interest in the Atapu field and 28 per cent in the Sépia field.