Petronas,
Pertamina and PetroVietnam in joint deal
Posted: 17 June 2003
Petronas signed a production sharing contract with Pertamina and
PetroVietnam to jointly explore for and develop hydrocarbon resources
in Block SK305 offshore Sarawak, Malaysia, further enhancing the
alliance under the ambit of the Tripartite Cooperation Arrangement
between the three ASEAN national oil companies.
Under the terms of the PSC, the three parties have formed a joint
venture company, PCPP Joint Operating Company (PCPP), to operate
the block.
PETRONAS Carigali Sdn Bhd, a wholly-owned exploration and production
subsidiary of PETRONAS, has a 40 per cent equity in PCPP, while
Pertamina and PetroVietnam Investment & Development Company
(PIDC), which is a unit of PetroVietnam, have a 30 per cent stake
each.
Block SK305 is located in water depth of 150 metres in the Balingian
Province offshore Sarawak.
Covering an area of about 15,164 square kilometres, the block was
previously operated by Shell until 1999.
Under the PSC signed today, the operators are required to drill
two firm and two optional exploration wells as well as acquire and
process new 2D and 3D seismic data on the block.
The minimum financial commitment for the block is RM39 million.
The signing of the PSC for Block SK305 signifies another very significant
step towards fostering a more meaningful and mutually beneficial
partnership between PETRONAS, PetroVietnam and Pertamina.
In January last year, the three counterparts were awarded two offshore
exploration blocks in Vietnam, namely Blocks 10 and 11.1, operated
by Con Son Joint Operating Company whose equitry holders are PIDC
(40 per cent), Pertamina (30 per cent) and PETRONAS Carigali Overseas
Sdn Bhd (30 per cent).
The Tripartite Cooperation Arrangement will also facilitate the
transfer and exchange of knowledge and technology between the three
partners which will assist in enhancing and upgrading of skills
and expertise.
It is set to pave the avenue for more joint cooperation in the
petroleum exploration and production activities between PETRONAS,
PetroVietnam and Pertamina in Malaysia, Vietnam and Indonesia.
After having secured exploration blocks in Vietnam and Malaysia,
the three parties are now undertaking joint evaluation of acreages
in Indonesia and expect to conclude a similar contract in the near
future.
At the PSC signing ceremony in Kuala Lumpur today, PETRONAS was
represented by its President and Chief Executive Officer Tan Sri
Dato' Mohd Hassan Marican, Pertamina by its President Director and
Chief Executive Mr Baihaki Hakim, and PIDC by its Managing Director
Mr Do Van Hau.
Posted by Richard Price,
Editor Pipeline Magazine
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