Project Profile
Value: Undisclosed
Location: Melaka Strait, Malay side of the Central Sumatra Basin, offshore West Coast Peninsular, Malaysia
Area: 24,541 square kilometres
Start-up Year:
Salamander Energy plc has signed a Production Sharing Contract (PSC) for Block PM322, located in the Melaka Strait on the Malay side of the Central Sumatra Basin, offshore West Coast Peninsular Malaysia. Block PM322 is the group’s first license in Malaysia. Salamander will operate the PSC with an 85 percent working interest. The PM322 PSC contains the Port Klang oil discovery which was made by Sun Oil in 1991, in the same drilling campaign that also resulted in the discovery of the Salamander operated Bualuang oil field in the Gulf of Thailand. The PSC is located in shallow water and covers an area of approximately 7,722 square miles (20,000 square kilometres). This offshore area has seen very limited drilling with only six wells ever drilled in the Malaysian side of the Melaka Strait. However, with two discoveries reported, the extension of the Sumatran basins into Malaysian waters has been demonstrated, indicating the hydrocarbon potential of the acreage. The committed work program consists of shooting 600 square km of new 3D seismic and drilling one exploration well before December 2016. The operating consortium must spend at least US$18 million of recoverable investment to undertake the work commitments.
Ophir Energy earmarked between US$8-10 million for acquiring 3D seismic of the PM322 PSC area throughout 2017 and 2018.
The Block PM322 PSC agreement was finalised in December 2013 and is valid for 27-years from the effective date. The exploration period was originally three years from the effective date. According to the PSC terms, a commercial crude discovery will result in the relevant sub-block being absorbed by the development area. If no commercial oil is produced from any sub-block within four years the sub-block being earmarked for development, the sub-block will be relinquished to Petronas. Failure to make any discovery of non-associated gas will see the gas fields relinquished to Petronas.
Operators:
Ophir( Ophir bought Salamander in 2015): Operator with 85% interest