Kuala Lumpur : Mal-aysia has awarded a production sharing contract for an oil block to Mubadala Development and Petronas Carigali, the exploration and production arm of Malaysia's oil company.
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 yesterday.
MDC Oil, a subsidiary of Mubadala, will take a 75 per cent participating interest and operate the block, which measures 5,786 square kilometres and holds a number of gas fields such as M5, Biji Sawi and Daun Kari.
Petronas Carigali will 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.
