Mubadala unit wins oil deal in Malaysia
13 Feb 2010
(MENAFN) The Malaysian government said that it 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, Reuters reported.
The minimum financial commitment for the SK320 block that lies off the coast of Sarawak state on island is estimated at $79.75 million, state oil firm Petronas said yesterday.
MDC Oil, a subsidiary of Mubadala, will take a 75 percent participating interest and operate the block, which measures 5,786 square kilometers and holds a number of gas fields such as M5, Biji Sawi and Daun Kari. Petronas Carigali will take up the remaining 25 percent 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.