OTHERS SAPURAKENCANA PETROLEUM BERHAD (THE “COMPANY”) - SIGNING OF PRODUCTION SHARING CONTRACTS AND JOINT OPERATING AGREEMENTS IN RELATION TO BLOCKS SB 331 AND SB 332
SAPURAKENCANA PETROLEUM BERHAD |
Type | Announcement |
Subject | OTHERS |
Description | SAPURAKENCANA PETROLEUM BERHAD (THE “COMPANY”) - SIGNING OF PRODUCTION SHARING CONTRACTS AND JOINT OPERATING AGREEMENTS IN RELATION TO BLOCKS SB 331 AND SB 332 |
INTRODUCTION The Board of Directors of SapuraKencana Petroleum Berhad (“SapuraKencana Petroleum” or the “Company”) (“Board”) is pleased to announce that it has, through its wholly-owned subsidiary, SapuraKencana Energy Sabah Inc. (“SKESI”), entered into two Production Sharing Contracts (“PSCs”) for Blocks SB 331 and SB 332 (“Blocks”), respectively with Petroliam Nasional Berhad (“PETRONAS”), the national oil company of Malaysia, effective 20 November 2014 (“Effective Date”). The PSCs are for period of twenty seven years commencing from the Effective Date. These Blocks are located in the eastern and southern part of Sabah covering about 31,047 square kilometres. Under the terms of both PSCs, SKPB will operate the blocks with participating interest of 70%. The partners in the PSCs are PETRONAS Carigali Sdn Bhd ("PCSB") and M3nergy Berhad ("M3nergy"). Under the PSC, the Parties are committed to drill two (2) wildcat wells and acquire 500 line km of new 2D seismic data in Block SB331 and to drill one (1) wildcat well and acquire 100 line km of new 2D seismic data in Block SB332. The Parties are also committed to do other exploration works such as integrated study based on existing data as well as Surface Geochemical Survey and an additional Coal Bed Methane study. Simultaneously and in conjunction with the execution of the PSCs, SKESI has also executed two Joint Operating Agreements (“JOA”) covering Block SB 331 and Block SB 332, respectively with PCSB and M3nergy. The duration of the JOA will be consistent with the duration of the PSC. BACKGROUND OF THE PARTIES (a) Background of SapuraKencana Energy Sabah Inc SKESI became a wholly-owned subsidiary of the Company following the successful acquisition by the SapuraKencana Petroleum of Newfield Malaysia in early 2014. (b) Background of PETRONAS Carigali Sdn Bhd PCSB is a wholly-owned exploration and production subsidiary of PETRONAS works alongside a number of petroleum multinational corporations through various production sharing contracts. (c) Background of M3nergy Berhad M3nergy Berhad is an Exploration and Production company with strategic focus on marginal field development. With over 30 years of experience, M3nergy has evolved into a major FPSO & FSO player. M3nergy owns and operates high value FPSO/FSO assets in South East Asia and hold 100% interest in a PSC block offshore West Java, Indonesia. EFFECT ON THE ISSUED AND PAID-UP CAPITAL OF THE COMPANY The executions of the PSCs and JOAs will have no effect on the issued and paid-up capital of the Company. RISKS FACTORS Risk factors affecting the PSCs and JOAs include execution risks relating to exploration and production of oil and gas business in Malaysia. The Company has the experience and expertise to undertake such projects through the integrated team post-acquisition of Newfield Malaysia. DIRECTORS AND MAJOR SHAREHOLDERS’ INTEREST None of the Directors and/or major shareholders and/or persons connected with the Directors and/or major shareholders has any direct or indirect interest in the awards of the PSCs and JOAs. DIRECTORS' STATEMENT The Board is of the opinion that the executions of the PSCs and JOAs are in the best interest of the Company. This announcement is dated 20 November 2014.
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Announcement Info
Company Name | SAPURAKENCANA PETROLEUM BERHAD |
Stock Name | SKPETRO |
Date Announced | 20 Nov 2014 |
Category | General Announcement |
Reference No | SP-141120-0AD8C |