Petronas has awarded two Production Sharing Contracts (PSCs) for Block SB309 and Block SB310 offshore Sabah to a partnership between Talisman Malaysia Ltd and Petronas Carigali Sdn Bhd.

The two blocks, measuring 5,815 sq km and 7,271 sq km respectively, are located in water depths of up to 150 meters. Previous exploration efforts were confined to the shallower sections in the blocks while the deeper sections remain mostly underexplored.

Under the terms of the blocks' PSCs, Talisman Malaysia, with participating interest of 70 percent in each block, will operate both Block SB309 and Block SB310. Petronas Carigali, the exploration and production arm of Petronas, will own the remaining 30 percent interest each in the two blocks.

For Block SB309, the partners are committed to acquire 1,300 square kilometres of new 3D seismic data and to drill three wells to a minimum aggregate depth of 8,500 meters. The minimum financial commitment for this block is estimated at US $75 million.

For Block SB310, the partners will acquire 1,300 square kilometers of new 3D seismic data and drill five wells to a minimum aggregate depth of 14,500 meters. The minimum financial commitment for Block SB310 is estimated at US $117 million.

The PSCs were signed today in Kuala Lumpur. Petronas was represented by its Vice President of Exploration & Production Business Encik Ramlan Abdul Malek; Talisman Malaysia by its Senior Vice President Mr. Jonathan Wright; and Petronas Carigali by its Managing Director/CEO Datuk Abdullah Karim.

Tags: PETRONAS, Talisman Energy