Petronas Announces New Licensing Round After Successful Conclusion of MBR 2024

After concluding the Malaysia Bid Round 2024 (MBR 2024) by signing two offshore production sharing contracts (PSCs) with Japan’s Inpex Corporation and its partners through its subsidiary Malaysia Petroleum Management (MPM), Malaysia’s state-owned energy player Petronas has announced a new licensing round.

The deals with Inpex and partners for exploration blocks SB306A and SB306B bring the total number of new PSCs signed under the round, including Malaysia Bid Round Plus (MBR+), which complements the annual Malaysia Bid Round, to 14.

The PSCs encompass 11 discovered resource opportunities (DROs)–Banang, BETA, DEWA Complex, Erb South, Ketapu, NBE, PKNB, Puteri, RAJA, Seligi NAG, and Ubah–and three exploration blocks, SB306A, SB306B, and PM515. They were concluded with 12 different operators, including Conoco Phillips and Shell.

Senior Vice President of MPM, Bacho Pilong, said: “Malaysia continues to be a top-tier destination for upstream investment, offering extensive opportunities for industry players to expand their portfolios. The 14 PSCs awarded under MBR 2024 and MBR+ reinforces Malaysia’s competitive edge and reflects strong investor confidence in the country as a leading Advantaged Energy hub.”

As for the two PSCs that concluded MBR 2024, these were awarded to a consortium comprising Inpex Malaysia E&P SB306A, Petronas Carigali, and SMJ Energy (SMJE). The award brings Inpex’s Malaysian offshore assets to six exploration blocks.

Block SB306A covers 4 514 square kilometers off the coast of Sabah, Malaysia, at a water depth of between 0 and 400 meters. Project partners are Inpex Malaysia (50%, operator), Petronas Carigali (42.5%), and SMJE (7.5%).

Block SB306B covers 4 395 square kilometers off the coast of Sabah, at a water depth of between 0 and 1 400 meters. Petronas Carigali is the operator with a 50% interest, while INPEX Malaysia has a 42.5% stake and SMJE 7.5%.

The Japanese player believes the new blocks will contribute to the expansion of natural gas and liquefied natural gas (LNG) business as outlined in its Vision 2035 announced earlier this month, as well as expand the company’s operations in Southeast Asia.

In line with its declaration of commitment to further strengthening its business in Malaysia, Inpex inked a deal to get the 42.5% participating interest an affiliate of Seascape holds in the Block 2A PSC offshore Malaysia in December 2024.

In a strategic move to expand the country’s hydrocarbon resources, Petronas also signed technical evaluation agreements (TEAs) for the Langkasuka Basin in the Straits of Malacca and the Layang-Layang Basin off the coast of Sabah. The deal for the former was signed with BP, Eni, Petronas Carigali, Pertamina, PTTEP, and TotalEnergies, and for the latter with Inpex, Petronas Carigali, and TotalEnergies.

Petronas says these agreements underscore its commitment to unlocking frontier basins and encouraging exploration in these “promising” regions.

Furthermore, building on the momentum of MBR 2024, MPM launched the country’s new licensing round, MBR 2025, under the theme ‘Advancing Progress with Advantaged Energy.’

Five exploration blocks in the Malay and Penyu Basins offshore Peninsular Malaysia, and the Sandakan Basin, off the coast of Sabah, are offered, each presenting what the state player says are diverse geological plays with significant resource potential.

Additionally, three DRO clusters are available in shallow waters near existing infrastructures and a potential gas market, which is expected to enable rapid monetization.