Petronas teams up with majors off Sabah

Offshore exploration: Petronas has signed a PSC with ConocoPhillips and Shell to explore the SB311 Block off Sabah

REUTERS

Josh Lewis

 13 December 2012 03:57 GMT

Malaysian state-run oil company Petronas has awarded a production sharing contract for Block SB311, off Sabah, to US company ConocoPhillips, Anglo-Dutch supermajor Shell and its own subsidiary, Petronas Carigali.

ConocoPhillips will operate the block with a 40% interest while Shell and Petronas will each hold a 30% stake.

Under the terms of the PSC the companies will need to drill two exploration wells, gather 400 line kilometres of 2D seismic and reprocess existing 3D seismic data on the block.

Block SB311 covers 1046 square kilometres in the central part of the Sabah basin, in water depths ranging from 50 to 100 metres, and lies in the same hydrocarbon fairway as the Kebabangan, Kinarut, and Erb West discoveries.

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