PTTEP and Petronas to relinquish Malaysia asset - Upstream Online
PTTEP and Petronas to relinquish Malaysia asset | Upstream Online
Thailand’s national upstream company PTTEP intends to relinquish exploration acreage offshore Malaysia after drilling failed to discover commercial hydrocarbons.
PTTEP is preparing to drop shallow-water Block PM 415 offshore Peninsular Malaysia from its upstream portfolio.
“In 2022, the project (partners) completed post-drilling evaluation which [showed that the block] does have not sufficient petroleum potential for commercial development. In the first quarter [of] 2023, the project was in the preparation process for block relinquishment after the exploration period has ended,” the Thai operator confirmed.
PTTEP and partner Petronas Carigali in 2021 drilled the Jelawai-1, Jelawai-1 ST1 and Bebaru-1 exploration wells on Block PM 415 but no commercial reserves were found.
Block PM415 covers 3932 square kilometres in water depths between 60 and 75 metres in the South Malay basin. National energy company and regulator Petronas earlier said the block had upside potential in deep reservoirs below the already producing fields on the block.
Co-venturers PTTEP and Petronas Carigali in 2019 were awarded blocks PM 407 and PM 415, the only two tracts off the coast of Peninsular Malaysia among the nine offshore exploration blocks offered in the previous year’s bid round.
The agreed commitment workscope involved 3D seismic surveys and two exploration wells apiece on blocks PM 407 and PM 415.
PTTEP operates both blocks with a 55% participating interest in PM 407 and a 70% stake in PM 415. Petronas Carigali is its sole partner for both assets.
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