Petronas offers 14 blocks under Malaysia Bid Round 2022
Malaysian state-owned Petronas has offered 14 exploration blocks in its Malaysia Bid Round 2022 (MBR 2022), it said on January 27.
The 14 blocks comprise six clusters of discovered resource opportunities (DRO) and one cluster of late-life assets (LLA). The blocks on offer are located in the geological provinces within the Malay, Sabah and Sarawak basins. Most of these blocks contain existing oil and/or gas discoveries that will accelerate monetisation activities, the company said.
The six DRO clusters featured in the MBR 2022 are Meranti, Ubah, Baram Jr., A, C, and D, mostly in shallow water and are nearby existing production infrastructure. “In addition, the single LLA, which includes a cluster of three fields named the Abu Cluster, provides opportunity for the new operator to sweat the remaining oil in place using existing facilities,” Petronas said.
Petronas senior vice president of Malaysia Petroleum Management (MPM), Mohamed Firouz Asnan said the company believes there are many more prospects to be identified in the Malaysia basins, with the estimated remaining potential of about 21bn barrels of oil equivalent (BOE).
The state-owned firm is also offering technical study arrangements for two exploration areas in the southern Malay Basin and northwest Sabah Basin. Through the study, investors will have an opportunity to better understand the potential of the acreages, prior to submitting a bid proposal, it said.
While the enhanced profitability terms (EPT) production sharing contract (PSC) will continue to be applied to shallow water blocks, the newly introduced small field asset (SFA) and LLA PSC terms will accompany the DRO and LLA on offer, respectively. Meanwhile, the three deepwater opportunities included in the MBR 2022 will benefit from the deepwater revenue over cost (R/C) PSC terms.
At the same time, investors will continue to enjoy flexible bidding options such as merging two adjacent blocks under one PSC, transferable minimum work commitments between two adjacent PSCs, as well as phased exploration period as part of the non-fiscal enhancements introduced earlier.
Following the MBR 2022 launch, Petronas is hosting a virtual data room that will be accessible from today until June 30, allowing potential investors to conduct data review anywhere and anytime during the bid round period.