PETRONAS AWARDS ULTRA DEEPWATER BLOCKS N AND Q TO BHP BILLITON AND PETRONAS CARIGALI

PETRONAS today awarded two Production Sharing Contracts (PSCs) to BHP Billiton Petroleum Sabah Corporation (BHPB) and PETRONAS Carigali Sdn Bhd for the ultra-deepwater Blocks N and Q, offshore Sabah.The two blocks are situated in water depths ranging from 1,600 to 2,800 metres, about 175km from Kota Kinabalu. Block N covers an area of about 3,910 square km, while Block Q has an area of about 4,748 square km.

The blocks are also situated in the same basin as and contain similar play types to some of the surrounding earlier deepwater discoveries of Kikeh, Malikai, Gumusut Kakap and Ubah.

Under the terms of the PSCs, BHPB with 60 per cent participating interests will operate the two blocks. PETRONAS Carigali, the exploration and production arm of PETRONAS, owns the remaining 40 per cent interests.

For Block N, the partners will acquire and process 1,500 square km of new 3D seismic data and drill four wildcat wells. The minimum financial commitment for the block is US$144 million.

For Block Q, the partners have committed to acquire 800 square km of 3D seismic data with a financial commitment amounting to US$12.4 million.

The PSCs for the blocks were signed today at the PETRONAS Twin Towers in Kuala Lumpur. PETRONAS was represented by its Vice President of E&P Business, Encik Ramlan Abdul Malek. Signing for BHPB was its Vice President of Global Exploration Mr. Robert Pascoe, while PETRONAS Carigali was represented by its Managing Director/CEO Encik Abdullah Karim.

Issued by
Media Relations Department

Mar 23, 2007OffshoreMan

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