Petronas Carigali, PTTEP sign MoU and operational agreements for blocks offshore Bintulu

KUALA LUMPUR (Dec 26): Petronas Carigali Sdn Bhd (Petronas Carigali), a wholly owned subsidiary of Petronas, has signed a memorandum of understanding (MoU) and two technical assistance agreements (TAAs) with Thailand’s PTT Exploration and Production (PTTEP) in relation to the development of PTTEP-operated Blocks SK405B and SK410B located off the coast of Sarawak.

The MoU covers the scope of potential evacuation of production from Block SK405B through D35/D21/J4 production sharing contract (PSC) facilities, Post 1976 Balingian PSC facilities and Bintulu Crude Oil Terminal operated by Petronas Carigali.

The first TAA covers the study and design works for Block SK405B fields into the same Petronas Carigali-operated facilities.

The second TAA is for the assistance of engineering design for the potential construction, tie-in works, pipeline and cable crossings of Block SK410B for Lang Lebah’s gas evacuation to the Bintulu Additional Gas Supply Facilities 2, as well as for the potential production and handling of Lang Lebah’s condensate at the Bintulu Integrated Facilities.

Signing the MOU and the TAAs on behalf of Petronas Carigali was senior general manager of Sarawak Asset, Anuar Ismail while PTTEP was represented by its country manager, Kanok Intharawijitr.

To note, PTTEP, is a national petroleum exploration and production company based in Thailand. It is a subsidiary of the state-owned PTT Public Company Ltd.

Anuar said, “This collaboration would enable both parties to drive progress by leveraging on Petronas Carigali’s expertise and technology through continued focus on cost optimisation and operational excellence to ensure supply security, particularly in Sarawak.”

“We look forward to working together with PTTEP towards our common aspiration in growing Malaysia’s energy industry in the long run,” he added.

Kanok said, “PTTEP is delighted with this collaboration with Petronas Carigali and looks forward to its continued growth in the country, under the stewardship of Malaysia Petroleum Management, Petronas, as the nation’s custodian of petroleum resources.

“Currently, we operate eight PSCs in Sarawak with a production volume of about 15 KBOPD and about 200 MMscfd of crude and gas respectively.”

The PTTERP country manager further noted that in Sarawak, the group has a number of developments forthcoming including SK410B and SK405B.

“We highly appreciate and value this collaboration a lot since it will enable the parties to advance the success of our projects,” he added.

With a keen focus on supporting the domestic energy industry, Petronas Carigali continues to collaborate with industry partners as part of its deliberate steps in accelerating a sustainable portfolio to produce energy responsibly, in line with Petronas’ Net Zero Carbon Emissions by 2050 Pathway.

PTTEP holds 49.5 per cent participating interest in Block SK405B PSC, with MOECO Oil (Sarawak) Sdn Bhd and PETRONAS Carigali holding 25.5 per cent and 25 per cent respectively.

For Block SK410B PSC, PTTEP and Kuwait Foreign Petroleum Exploration Company each holds 42.5 per cent interest with the remaining 15 per cent held by PETRONAS Carigali.