KUALA LUMPUR, 10 April 2023 - SKYE UMDP Exploration Berhad, a joint venture between UMD Petroleum Sdn Bhd and SKYE Energy Ventures Pty Ltd, has secured the Production Sharing Contract (PSC) for Block PM340 from Petroliam Nasional Berhad (PETRONAS).

The block was offered under the Malaysia Bid Round (MBR) 2022 and is situated in the Malay Basin, surrounded by several discoveries and key producing fields. The 16,404 square kilometre asset includes three discovered fields — Bunga Tanjung Merah, Ular and Kuda — with a combined 400 billion cubic feet of gas, and 14 prospects with up to 669 million barrels of oil equivalent in place.

SKYE UMDP aims to explore the block and identify new hydrocarbon resources with upside potential through fit-for-purpose technologies. It plans to create value through the early monetisation of discovered resources on the block, potentially utilising existing infrastructure.

Shahrin A Wahab, Co-founding Director and President/CEO for the group of companies, sees the Block PM340 PSC as a remarkable opportunity for the local company to prove its worth in the upstream arena. With the support of local financial institutions, the company's ambitious aspirations have been rewarded with this latest development.

Meanwhile, SKYE UMDP Executive Director Suhaimi Abdul Manaf noted PETRONAS' efforts to encourage capable local companies to participate in the upstream industry. SKYE UMDP, with a 50% interest, will operate Block PM340 on behalf of PETRONAS Carigali Sdn Bhd, which holds the remaining 50% equity.

UMD Petroleum Sdn Bhd started as an engineering, procurement, construction, installation and commissioning contractor before building up a sub-surface team ahead of making its upstream debut. The company is now focused on becoming a full-fledged exploration and production company with the support of its technical partner, SKYE Energy Ventures.

The signing ceremony was held on 15 February 2023 at the Kuala Lumpur Convention Centre, with PETRONAS Senior Vice President of Malaysia Petroleum Management Mohamed Firouz Asnan signing on behalf of PETRONAS and SKYE UMDP Executive Director Suhaimi Abdul Manaf and PETRONAS Vice President of Malaysia Assets, Upstream and PCSB Chief Executive Officer Hasliza Othman representing the Production Sharing Contractors. PETRONAS Executive Vice President & Chief Executive Officer of Upstream, Datuk Adif Zulkifli, was also present.

The award of the Block PM340 PSC marks a significant milestone for SKYE UMDP and its partners, as they embark on their first exploration and production asset.