Muscat: Mubadala Petroleum has coupled recent exploration success with expanding interests to develop its position offshore Malaysia.
Mubadala Petroleum has signed an agreement with Shell to swap equity in two exploration blocks offshore Malaysia, said a company release.
Under this agreement, starting January 1, 2014 Mubadala Petroleum will gain a 20 per cent interest in the deepwater Block 2B while Shell will gain a 20 per cent interest in Block SK320. Deepwater Block 2B is operated by Shell, Mubadala Petroleum operates Block SK320. Petronas Carigali is a participant in both blocks.
In addition, the current exploration drilling campaign in Block SK320 has yielded two new gas discoveries, Pegaga and Sintok, to add to the existing M5 discovery.
"The equity swap agreement is an important step for Mubadala Petroleum's growth strategy in Malaysia and marks our first partnership in Southeast Asia with Shell, an important player in deepwater exploration. In relation to our recent exploration success, we need to do further work to determine the full extent and commerciality of those discoveries, but coupled with the new partnership with Shell, we are moving our business in Malaysia in a positive direction," said Maurizio La Noce, chief executive officer of Mubadala Petroleum.
Sintok-1 well was drilled to a depth of 2775 metres into the main target reservoir and penetrated a 290 meter gas-bearing carbonate reservoir. Sintok-1 will be plugged and abandoned as planned, after which a third prospect, Sirih, will be drilled, adjacent to Sintok.
Further work is required to assess more fully the nature and extent of both discoveries; additional drilling is already being planned to appraise the extent of the Pegaga discovery.
Block SK320 was awarded to Mubadala Petroleum and Petronas Carigali Sdn Bhd in 2010 and contains the M5 discovery. Deepwater Block 2B is adjacent to Block SK320 and was awarded to Shell and Petronas Carigali Sdn Bhd in 2012.