Petronas, PTTEP collaborate on offshore Malaysia blocks

Petronas Carigali, a wholly-owned subsidiary of Petronas, has signed an MoU and two technical assistance agreements (TAAs) with PTT Exploration and Production (PTTEP), the state oil company of Thailand, for the development of PTTEP-operated Blocks SK405B and SK410B offshore Malaysia, it announced on December 22.

The MoU outlines the potential evacuation of production from Block SK405B through the utilisation of D35/D21/J4 production sharing contract (PSC) facilities, post-1976 Balingian PSC facilities, and the Bintulu crude oil terminal operated by Petronas Carigali.

Additionally, the first TAA involves study and design works for Block SK405B fields integrated into Petronas Carigali-operated facilities. The second TAA focuses on engineering design assistance for the potential construction, tie-in works, pipeline, and cable crossings of Block SK410B. This includes facilitating Lang Lebah's gas evacuation to the Bintulu additional gas supply facilities 2, and addressing potential production and handling of Lang Lebah’s condensate at the Bintulu integrated facilities.

In terms of participating interests, PTTEP holds 49.5% in Block SK405B PSC, with MOECO Oil and Petronas Carigali holding 25.5% and 25%, respectively. For Block SK410B PSC, PTTEP and Kuwait Foreign Petroleum Exploration Company each hold a 42.5% interest, while Petronas Carigali holds the remaining 15%.