Petronas achieved a milestone today of 100 active production sharing contracts (PSC) when it awarded Salamander Energy Malaysia LTD an acreage in the Straits of Malacca, said The Star.
The English daily reported that this is the most the oil company has had at any point in time. It also marks Petronas's first exploration acreage in the Straits since 1992, where only six wells had been drilled in that area.
“Considering Malaysia’s ‘matured’ basins, reaching 100 active PSCs is testimony to the country’s successful petroleum resource management as it demonstrates our ability to garner continued interest from oil and gas players,” vice-president of petroleum management Ramlan Abdul Malek was quoted as saying.
The exploration well will be drilled in Block PM323 to a minimum depth of 1,400 metres, to acquire and process 600 square km of new 3D seismic data. The minimum financial commitment is RM57.9 million, said The Star.
Petronas has 27 PSC contractors and more than RM300 billion has been invested in Malaysia's upstream oil and gas sector since its establishment and the adoption of PSCs in Malaysia.
A fixed percentage from its revenue is allotted for cash proceeds and paid to the Federal and state governments.
Malaysia's oil and gas industry contributes approximately 20% to national gross domestic product with more than 4,000 oil and gas businesses including international oil companies, independents, services and manufacturing companies. - December 12, 2013.