Block PM318 is located in the established oil and gas producing Malay Basin. It covers an area of around 1,600 sq km and lies 300 km off the coast of Kertih in 60-80 metres water depth.
Petronas Carigali will be the operator of the block and, together with Newfield unit Newfield Peninsula Malaysia Inc.
In a statement Petronas said, “The two partners will acquire and process 400 sq km of new 3D seismic data and drill four wildcat wells in the block to a minimum depth of 7,000 metres. A minimum financial commitment for the block is US$12 million.”
Deepwater Block 2C is located off the coast of Sarawak in waters ranging from 200-2,000 metres and covers an area of around 4,000 sq km. The area, according to Petronas, is “relatively unexplored” but a recent seismic survey commissioned by the company indicated the “presence of numerous untested exploration opportunities”.
According to Petronas, “Deepwater Block 2C will be operated by [Newfield unit] Newfield Sarawak. The partners will drill a minimum of two wildcat wells in the block to a minimum depth of 6,000 metres and to reimburse Petronas a total of US$7.7 million for the new 3D seismic data that Petronas acquired for the block. A minimum financial commitment for the block is US$28 million.”
Under the terms of the PSC, Newfield Peninsula’s working interest in Block PM318 is 50%. Newfield Sarawak’s share in Deepwater 2C is 60%. Petronas Carigali holds the remaining balances on both blocks.
