INPEX expands presence in Malaysia with new exploration block SK510 award
INPEX CORPORATION, Japan’s premier exploration and production (E&P) company, has marked a significant milestone in its strategic expansion within the energy sector by securing Block SK510 in the latest Malaysia Bid Round 2023. This announcement comes as part of a collaborative effort with Malaysia Petroleum Management (“MPM”) and Petroliam Nasional Berhad (PETRONAS), the custodian of Malaysia’s hydrocarbon resources, highlighting a significant step forward in INPEX’s business operations in Southeast Asia.
Strategic Collaboration and Production Sharing Contract
In association with this award, INPEX, through its subsidiary INPEX Malaysia E&P SK510 Sdn. Bhd., entered into a Production Sharing Contract (PSC) with PETRONAS, PETRONAS Carigali Sdn. Bhd. (PCSB), PT Pertamina Malaysia Eksplorasi Produksi (PMEP), and Petroleum Sarawak Exploration & Production Sdn. Bhd. (PSEP). This collaboration underscores the strong partnership between INPEX and regional energy giants in exploring and developing hydrocarbon resources offshore Malaysia.
Block SK510: A New Exploration Frontier
Block SK510 represents a new exploration frontier for INPEX in Malaysia, following the award of two other exploration blocks, 4E and SK418, earlier in February 2023. Located off the northeast coast of Sarawak, this shallow water block spans an area of 1,864 square kilometers, with water depths ranging between 60 and 100 meters. As the operator, PCSB, along with INPEX holding a 25% participating interest, positions the consortium for significant exploration potential in the region.
INPEX Strengthens Southeast Asia Operations with Strategic Acquisition of Block SK510
Aligning with INPEX’s Vision for Natural Gas
The acquisition of Block SK510 is expected to play a pivotal role in INPEX’s strategic shift towards natural gas, as outlined in INPEX Vision @2022 announced in February 2022. This move not only aligns with global trends towards cleaner energy sources but also reinforces INPEX’s commitment to expanding its footprint in Southeast Asia, a core business area for the company. By strengthening its presence in Malaysia, INPEX aims to contribute to the region’s energy security and sustainability.
Commitment to Malaysia and Southeast Asia
INPEX’s continued investment in Malaysia signifies the company’s dedication to fostering long-term business relationships within the country and the broader Southeast Asian region. The award of Block SK510, along with the company’s active engagement in additional exploration efforts, highlights INPEX’s commitment to enhancing its operations and supporting the development of the local and regional energy sector.
As INPEX CORPORATION embarks on this new venture, the energy industry watches closely, anticipating the exploration success and potential contributions to natural gas production in Southeast Asia. This strategic expansion not only underscores INPEX’s role as a key player in the global energy market but also its commitment to contributing to the energy transition and sustainable development in the region.