ConocoPhillips gears up for Malaysian drilling

April 15, 2021

Dateline 2021-03-29, Energy Voice:

ConocoPhillips is set to drill up to three wells off the Malaysian state of Sarawak after hiring a jack-up drilling rig from Malaysia’s Velesto Energy.

Velesto said ConocoPhillips has hired its Naga (dragon) 7 jack-up rig under a contract worth $8 million. Drilling is planned to start before end of June.

ConocoPhillips is considering drilling up to three wells offshore Sarawak this year – the Salam-3 appraisal and the Gagau-1 wildcat on Block WL4-00, and the Mersing-1 exploration well on Block SK 304.


After 49 oil and gas workers test Covid-19 positive, Sarawak says index case, company now under scrutiny

March 23, 2021

Dateline 2021-03-04, Malay Mail:

The Sarawak Disaster Management Committee (SDMC) will take stern action against an individual and an oil and gas company in Miri, if it is found that standard operating procedures (SOP) were not complied with, its chairman Datuk Amar Douglas Uggah said today.

He said SDMC is conducting an investigation into the matter after 49 oil and gas workers tested positive for Covid-19 today.

“We will not hesitate to take stern action as a warning to us all,” he told reporters during a media briefing on the Covid-19 situation in the state.

He said this cluster involved a day tripper who failed to comply with the SOP and was exposed to Covid-19 in a high-risk area.

“A total of 49 Covid-19 positive cases identified in the Miri district are from the Baram Oil and Gas Platform.


Petronas readies 13 blocks for 2021 offshore round

March 11, 2021

Historical news.

Dateline 2021-02-22, Energy Voice:

Malaysia will offer 13 offshore exploration blocks, including discovered fields and deep-water opportunities, as part of its Malaysia Bid Round (MBR) 2021 due to launch on 26 February.

Included in the round are six discovered fields to incentivise investors to undertake more extensive exploration activities within those blocks, Malaysian national oil company (NOC) Petronas said Friday. This year’s round also features four deep-water blocks next to the coast of Sarawak and Sabah, which saw prominent exploration discoveries in recent years, added Petronas.

The round will be launched virtually in Kuala Lumpur, Malaysia and live-streamed to three different markets in North America, UK and Europe, as well as Asia Pacific. Themed ‘Grow your Energy Portfolio with Us’, MBR 2021 aims to attract investors with unique capabilities to unlock the full potential of the hydrocarbon resources in Malaysia.


PROJECTS: KUFPEC’s Malaysia oil discovery ‘significantly more’ than expected – CEO

February 18, 2021

Dateline 2021-02-03, Zawya:

Kuwait Foreign Petroleum Exploration Company’s (KUFPEC) oil discovery in Malaysia is significantly more than expected, the company’s CEO said.

Shaikh Nawaf Saud Al-Sabah told the Atlantic Global Energy Forum 2021 last month that it is one of the top finds over the past couple of years.

“We are in the process of doing the appraisal right now and all indications are that it will be quite significantly more than what we initially expected,” he said.

The discovery, in Block SK-410B located 90 kilometres offshore Sarawak, is estimated to be multi-TCF gas, according to a KUFPEC press release. It said the exploration well encountered a gross gas column of 252 metres.


Sabah to follow Sarawak in pursuing oil and gas rights

December 24, 2020

Dateline 2020-12-08, Straits Times:

Sabah will follow Sarawak in pursuing its rights, particularly where oil and gas are concerned.

Deputy Chief Minister Datuk Seri Jeffrey Kitingan congratulated Sarawak for reclaiming its rights, adding that the Sabah government would ensure the same for the state.

He was referring to the Sarawak government signing a commercial agreement with Petroliam Nasional Bhd (Petronas) on Monday which allows the state, through its subsidiary Petroleum Sarawak Bhd (Petros), to play a bigger role in the oil and gas industry through cooperation with Petronas.

“Kudos to the Sarawak government for reclaiming their rights. It is no secret that the Sarawak government had been doing all the heavy lifting in this fight and we are grateful for their efforts.


Petronas agrees to give Sarawak bigger share of oil, gas revenue

December 23, 2020

Dateline 2020-12-08, The Straits Times:

Malaysian energy giant Petronas said yesterday that it has agreed to a commercial settlement that grants Sarawak state a higher share of revenue for oil and gas produced in the state.

Under the agreement, Sarawak state will also be given more active involvement in the state’s oil and gas industry through management of onshore oil and gas resources via its state-owned energy firm Petros, according to a joint statement by Petronas and the state government.

Both Petronas and the state government said they remained committed to providing a “stable, conducive business and investment environment for the sustainable growth of the oil and gas industry” in the state.


Incentives needed for investors in Sarawak O&G

December 22, 2020

Dateline 2020-12-08, Malaysian Reserve:

THE newly sealed commercial agreement between Sarawak state government and Petroliam Nasional Bhd (Petronas) would need to provide investment incentives for it to remain attractive for investors.

An industry expert said an agreement like that would have to create investment incentives as any increase in royalty amounts would discourage new investment in exploration and production.

“To have a successful agreement, part of it needs to ensure the right incentives are in place for investments in the state. Such an agreement may lead to higher investment costs, particularly in a low oil price environment, and cause lower investment and production in the coming years,” the expert, who asked for anonymity, told The Malaysian Reserve.


Malaysia and China in stand-off near PTTEP’s appraisal drilling

December 17, 2020

Dateline 2020-11-30, Upstream:

The Chinese Coast Guard (CCG) and Royal Malaysian Navy have been involved in yet another standoff over oil and gas drilling in the South China Sea as tensions mount between regional powers over resources in the strategic sea area.

The CCG vessel 5402 in mid-November approached the Borr Drilling-owned jack-up Gunnlod, which is working for Thailand’s national upstream company PTTEP on Block SK 410B off Sarawak, East Malaysia, according to the Asia Maritime Transparency Initiative (AMTI) of the Center for Strategic & International Studies (CSIS).


Malaysia’s Sarawak seeks investors to find new onshore plays

December 14, 2020

Dateline 2020-11-20, Energy Voice:

The eastern Malaysian state of Sarawak, home to the country’s LNG export complex, will soon open onshore acreage for bidding, as it hopes to revitalise its onshore oil and gas industry after taking regulatory control from the federal government.

Since the 1970s, significant oil and gas reserves have been discovered offshore Sarawak, which have helped supply one of the world’s largest LNG plants in Bintulu.

Although there has been significant exploration onshore since the 1980s, results have been modest. Still, Sarawak remains hopeful that new investment will help prove fresh commercial reserves by applying new technologies.

Moreover, Sarawak, after winning a recent battle against the federal government and Petronas for greater control of its natural resources, will now start offering onshore acreage through open auction, as well as direct negotiation. Two onshore blocks, covering the Miri and Limbang, as well as Lawas areas – SK 433 and SK 334 – will be open for bidding in the coming months, the state announced on 30 October 2020.


Sarawak forms committee to ensure greater participation in oil and gas sector

December 11, 2020

So, can I hold dual citizenship? Malaysia and Sarawak?
Dateline 2020-11-13, Malay Mail:

 A committee has been formed to facilitate negotiations between the state government, the federal government and Petroliam Nasional Berhad (Petronas) to ensure greater participation of the state in the oil and gas sector, Deputy Chief Minister Datuk Amar Awang Tengah Ali Hasan said in the state assembly today.

He said negotiations on commercial solutions for the matter are still ongoing among the three parties.

“The state government is fully committed to taking control of the exploration and mining of oil and gas within the territorial boundaries of the state,” he said in his winding-up speech for the debate on the State Budget 2021.