Kuala Lumpur. Pertamina Malaysia Exploration Production (PMEP), a subsidiary of state-owned oil and gas company Pertamina, has won the bidding for the exploration block SK510 through Malaysia Bid Round (MBR) 2023.

Pertamina, along with partners Petronas from Malaysia and Japan's Inpex, will collaborate in the exploration of this block.

PMEP operates as a subsidiary of Pertamina International Exploration and Production (PIEP) and is affiliated with Pertamina Hulu Energi (PHE).

Danar Dojoadhi, Director of Strategic Planning and Business Development at PHE, said that the participating interests (PI) holders in Block SK510 include Petronas Carigali Sdn Bhd as the operator with a 40 percent share, PMEP and Inpex Malaysia E&P SK510 Sdn Bhd with 25 percent each, and Petroleum Sarawak Exploration & Production Sdn Bhd holding the remaining 10 percent.

"The 1,864 square kilometer block, located off the coast of Sarawak, Malaysia, is part of PHE's upstream asset management portfolio," said Danar during the signing ceremony in Malaysia on Tuesday.

This acquisition contributes to PMEP's portfolio, which now includes a total of six managed blocks. PMEP is responsible for supervising oil and gas exploration as well as production activities in the Sabah and Sarawak regions of Malaysia through production-sharing contracts (PSC).

PMEP holds participating interests in three production blocks: SK309 (25.5 percent), Block SK311 (25.5 percent), and Block K (24 percent). Additionally, two exploration blocks: SK510 (25 percent), and SK 314A (25.5 percent), and one development and exploration block: Block H (18 percent). 

"Managing Block SK510 can strengthen PHE's presence in Malaysia, contributing to the company's goal of enhancing oil and gas resource growth through overseas exploration assets," said  Danar.

PHE has also completed acquisitions of oil blocks in several working areas, including Peri Mahakam & Bunga in the East Indonesia region, East Natuna in the Indonesia-Malaysia-Vietnam border area, and Masela in the Maluku region.

Datuk Bacho Pilong, Senior Vice President of MPM (Malaysia Petroleum Management) Petronas, expressed a long-standing relationship with Pertamina, dating back to before the establishment of Petronas 50 years ago. "I hope this collaborative effort continues to maximize the untapped potential in these blocks," he said.