The Malaysian Subsidiary of ENEOS Xplora Extends Production Sharing Contract with Petronas

The Malaysian subsidiary of Japan’s ENEOS Xplora has recently inked a deal with Malaysia’s national oil and gas company, Petronas, to extend the production sharing contract (PSC) for block SK10 off the coast of Sarawak, offshore Malaysia. This 10-year extension, lasting from 2028 to 2038, solidifies ENEOS’ presence in the region.

ENEOS Xplora Malaysia, in partnership with PETRONAS Carigali, has been operating in block SK10 since 1987 when the PSC was initially awarded. Over the years, the company has made significant strides in production, with notable discoveries like the Helang field in 1990 and subsequent developments in the Layang and Beryl fields.

In recent years, ENEOS Xplora has ramped up its production efforts, with oil extraction from the Layang and Helang fields, as well as gas production from the Layang and Beryl fields, contributing to the region’s energy supply. The natural gas produced is processed into LNG at a facility in Bintulu, Sarawak, and exported to East Asian countries, including Japan.

With ENEOS Xplora’s LNG volume from block SK10 accounting for approximately 4% of Japan’s annual imports, the block plays a crucial role in ensuring stable energy supply in the region. The partnership structure sees Petronas Carigali holding a 25% interest in the block, with the remainder divided between ENEOS Xplora, INPEX, and Mitsubishi Corporation.

Not resting on its laurels, ENEOS Xplora and its partners recently secured PSCs for two blocks offshore Indonesia, Gaea and Gaea II, as part of the Indonesia Petroleum Bidding Round 2024. EnQuest is set to take the helm as operator, with promising resource potential in the trillions of standard cubic feet.