In line with the collaboration, Petronas Carigali has inked a memorandum of understanding (MoU) and two technical assistance agreements (TAAs) with PTTEP for the development of Blocks SK405B and SK410B in Sarawak.
It said the MoU covers the scope of the 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.
“Meanwhile, the first TAA covers the study and design works for Block SK405B fields in 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,” it noted.
Meanwhile, Petronas Carigali senior general manager of Sarawak Asset, Anuar Ismail said the collaboration would enable both parties to drive progress by leveraging 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 with PTTEP towards our common aspiration in growing Malaysia’s energy industry in the long run,” he said in a statement today.
PTTEP country manager Kanok Intharawijitr said it currently operates eight PSCs in Sarawak with a production volume of about 15 thousand barrels of oil per day and 200 million standard cubic feet per day of gas.
“In Sarawak, we have a number of developments forthcoming including SK410B and SK405B.
“We highly appreciate and value this collaboration since it will enable the parties to advance the success of our projects,” he added.
PTTEP holds 49.5% participating interest in Block SK405B PSC, with MOECO Oil (Sarawak) Sdn Bhd and Petronas Carigali holding 25.5% and 25%, respectively.
For Block SK410B PSC, PTTEP and Kuwait Foreign Petroleum Exploration Company each holds 42.5% interest with the remaining 15% held by Petronas Carigali.