Malaysian state oil company Petronas has launched a new licensing round on behalf of the government, offering nine exploration blocks and targeting awards before the end of the year.

The round, which is offered by Petronas in its role as Malaysian regulator, offers two blocks off Peninsular Malaysia, another four offshore and onshore Sarawak and three more off Sabah.

The acreage on offer off Peninsular Malaysia includes Block PM415, which covers 3932 square kilometres in water depths between 60 and 75 metres in the South Malay basin.

Block PM415 is home to producing fields that are not part of the licensing offer and Petronas said there is upside potential in deep reservoirs below them.

The second Peninsular Malaysia block is 6742 square kilometre PM512 (formerly PM407), which is in similar water depths.

Multiple gas-bearing reservoirs have already been encountered in the Tembakau gas discovery on the block while the producing Bertram oilfield lies to the east.

There are two blocks on offer onshore Sarawak — SK334 and SK433.

No wells have yet been drilled on SK334, which covers 6685 square kilometres, while Block SK433 includes the Adong Kecil West discovery made in late 2012 by JX Nippon Oil & Gas.

Adong Kecil West was the first onshore discovery made in Malaysia in 24 years.

Two blocks are also available off Sarawak — SK328 and SK427 (formerly SK304B and SK405D).

Shallow-water Block SK328 covers 8290 square kilometres in the Southwest Sarawak and Tatau geological provinces.

Both 2D and 3D seismic has been acquired and the block has seen the Rajang-1 and Nuang-1 exploration wells drilled.

Petronas’ 2015 Nuang-1 light oil basement well is said to have proved the petroleum system is working for oil potential. One geologist noted that the Tatau half graben sub-province has been neglected due to high concentrations of carbon dioxide and nitrogen.

Block SK427 is in water depths of between 10 and 50 metres. Seismic has already been acquired and 11 wells drilled on this 3774 square kilometre block.

The three blocks on offer off Sabah — SB410, SB412 and deep-water SB 2K — are all located in the Northwest Sabah basin.

Block SB410 includes the Nosong, Bongawan North and Grafit fields and is surrounded by the producing Kinabalu and Samarang fields. Water depths at the 2042-square kilometre block range from 120 to 200 metres.

There has been significant exploration to date on Block SB412 to the northeast, which has similar water depths.

This block contains the Danum and Mengkira fields, while the Belud and Belud South fields are nearby.

The key prospects in Block SB412 are located adjacent to the same proven kitchen as the Tembungo, South Furious, St Joseph and Belud discoveries, according to Petronas.

Block SB 2K is the only deep-water acreage being offered. No wells have yet been drilled on the block although 15,236 line kilometres of 2D and 825 square kilometres of 3D seismic have been acquired.

SB 2K is near to the Hebat, Jangas and Kental fields and the facilities for the producing Kikeh and Gumusut-Kakap fields.

For the round as a whole, potential bidders must first be assessed by Malaysia Petroleum Management, which is part of Petronas’ upstream division, before they can access and review supporting data.

The data room will close on 30 March and data evaluation the following day.

Companies have one month from reviewing the data to submit expressions of interest.

Shortlisted companies will then be invited for a closed tender process that Petronas intends to carry out during June and July.

After conditional awards are made, negotiations will be carried out to clarify production sharing contract terms ahead of formal signings between October and December.

Malaysia’s 2017 licensing round comprised 13 blocks, with industry sources having suggested that up to nine could be awarded.

US supermajor ExxonMobil has been tipped for deep-water acreage off Sabah.

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Petronas launches new licensing round