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Malaysia awards oil block to Mubadala JV

Kuala Lumpur, February 12, 2010

Malaysia has awarded a production sharing contract for an oil block to Abu Dhabi's Mubadala Development Company and Petronas Carigali, the exploration and production arm of the state oil firm.

The minimum financial commitment for the SK320 block that lies off the coast of Sarawak state on Borneo island is estimated at $79.75 million, state oil firm Petronas said on Friday.

MDC Oil, a unit of the Gulf state-owned company, will take a 75 per cent participating interest and operate the block, which measures 5,786 square km and holds a number of gas fields such as M5, Biji Sawi and Daun Kari.

Petronas Carigali shall take up the remaining 25 per cent stake. The production sharing contract includes commitments to acquire and process seismic data, and drill four wildcat wells to a minimum aggregate depth of 1,582 metres, Petronas said in a statement.

The award comes as the Southeast Asian country tries to stem slowing production. Malaysia is a net exporter of crude oil but Petronas has warned that it could turn into an importer as production from ageing oilfields slows and domestic demand grows.-Reuters

Tags: Mubadala | malaysia | Pertonas | oil block |

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