Petronas today launched the Malaysia Bid Round 2023 (MBR 2023), offering 10 exploration blocks and two clusters of Discovered Resource Opportunities (DRO). The company also signed deals from last year’s round representing the highest number of PSCs awarded in Malaysia within a single year since 2010.
Themed “Winning the Energy Transition with our Advantaged Energy”, MBR 2023 saw the participation of more than 50 oil and gas companies, as well as government agencies, foreign trade attachés and energy market consultants, noted the state-backed energy company. The annual event was also streamed live for potential partners in different parts of the world.
The 10 exploration blocks on offer are located within the producing Malay, Sabah and Sarawak basins, as well as the newly opened Penyu basin. These blocks cover various geological play settings with sizeable prospects to be explored, providing opportunities for investors looking for ‘Advantaged Energy’ – low cost, low carbon energy.
Also offered are the Chenang DRO cluster off the coast of Peninsular Malaysia and the Bambazon DRO cluster off the coast of Sabah. These are shallow water clusters located close to existing producing hubs that will enable quick monetisation.
PETRONAS Senior Vice President, Malaysia Petroleum Management (MPM), Mohamed Firouz Asnan said, “Petronas continues to shape the exploration and development strategies to unlock the full potential of Malaysia E&P by promoting investments in focused areas to deliver the ‘Advantaged Energy’ required by our customers.
“We continue to provide opportunities to companies with distinctive capabilities – opportunities that are accompanied by the right fiscal terms to maximise shareholder returns for both host authority and investors.
The MBR 2023 virtual data room will be open from today until the bid deadline submission on 15 September 2023.
Earlier today, Petronas also signed Production Sharing Contracts (PSCs) for nine exploration blocks marketed under the MBR 2022 with the winning bidders consisting of four existing and four new investors. The PSCs were signed by Firouz, in the presence of Executive Vice President and Chief Executive Officer of Upstream, Datuk Adif Zulkifli.
PETRONAS Carigali Sdn Bhd (PCSB) and E&P Malaysia Venture Sdn Bhd (EPMV) for Block PM327
Skye UMDP Exploration Bhd and PCSB for Block PM340
PCSB, PTTEP Sarawak Oil Limited and Petroleum Sarawak EP (PSEP) for Block SK325
PCSB and INPEX Malaysia E&P SK418 Sdn Bhd and PSEP for Block SK418
PCSB and EPMV; and PSEP for Block SK328
Longboat Energy (2A) Limited, Topaz Number One Ltd, PCSB and PSEP for Block 2A
INPEX Malaysia E&P 4E Sdn Bhd, PCSB and PSEP for Block 4E
Sarawak Shell Bhd, PCSB and PSEP for Block 3B
PCSB and EPMV; and SMJ Sdn Bhd for Block SB409
Commenting on the PSCs signing, Firouz said, “The signings of the exploration PSCs today and the three DRO clusters PSCs signed last month represent the highest number of PSC awarded in Malaysia within a single year since 2010. The first of the nine PSCs signed today also marks the 200th PSC awarded by PETRONAS since the maiden PSC signed in 1976. We look forward to working very closely with our newly signed PSC partners in discovering new molecules, so that together we will grow and create value in a sustainable manner.”
The nine exploration PSCs are expected to see an investment amounting to RM1.7 billion in exploration drilling capital, particularly in the deep-water areas and the underexplored formations. In addition, the award of these nine blocks has also reduced the number of Malaysia’s open blocks by about a third, in line with MPM’s efforts to increase exploration investments in the country.
Apart from issuing and managing petroleum arrangements in Malaysia, PETRONAS, through MPM, is the country’s oil and gas industry shaper and investment enabler that steers upstream petroleum activities in Malaysia.