KUALA LUMPUR (Dec 11): National oil corporation, Petronas, has awarded United Kingdom-based Salamander Energy Malaysia Ltd and Petronas Carigali Sdn Bhd (PCSB) a production sharing contract (PSC) for block PM322, in the Straits of Malacca.

Petronas Vice-President for Petroleum Management Ramlan Abdul Malek said this marked the 100 active PSCs in Malaysia, and was the most it has ever had at any one time since the PSC system was introduced in the country 37 years ago.

"Considering Malaysia's 'matured' basins, reaching 100 active PSCs is testimony to the country's successful petroleum resource management, as it demonstrates our ability to garner continued interest from oil and gas players," he said in a statement today.

Petronas said the PSC awarded to Salamander and PCSB, was the first exploration acreage located in the Straits of Malacca, to have been awarded by Petronas, since 1992.

It said under the terms of the PSC, Salamander would operate the block with a 85 per cent equity, while PCSB would own the remaining 15 per cent.

The two parties are committed to drill one exploration well in the block to a minimum depth of 1,400 metres, and to acquire and process 600 square kilometres of new 3D seismic data, with a minimum financial commitment of US$18 million (RM57.84 million), it added.

The PSC system was introduced in 1976 in Malaysia, two years after the incorporation of Petronas, and since then, a total of 151 PSCs have been awarded to oil and gas upstream players.

Currently, Petronas has 27 PSC contractors participating in the country's upstream industry, on a variety of fiscal arrangements.