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Petrogas relinquishes interest in Malaysia onshore block

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Oilfield Technology,

RH Petrogas has announced that its subsidiary, RHP (Mukah) Pte. Ltd. (RHPM), will not be seeking a further extension of the Block SK331 Production Sharing Contract (SK331 PSC) when its current exploration period expires on 5 June 2020. The Group has arrived at this decision after taking into consideration the block’s geological risks and the magnitude of additional exploratory works required to further appraise the prospectivity of the block, as well as the current challenging business environment facing the oil and gas industry. As such, the Group will be proceeding to relinquish the block, which is located onshore Sarawak, East Malaysia.

The Group is expected to incur expenses of approximately US$130 000 in relinquishment costs during the financial year ending 31 December 2020 covering retrenchment costs for RHPM employees, professional fees and other related expenses. The relinquishment process of the SK331 block is expected to be fully completed before the end of the year.

Francis Chang, CEO, said: “The relinquishment of SK331 PSC will allow the Group to focus its resources on developing its key producing assets in Indonesia. As previously announced, the Group had been awarded two new 20-year production sharing contracts in Indonesia, namely the Salawati PSC and the Kepala Burung PSC, which will both commence this year. Besides existing production, these two blocks are highly prospective with a large inventory of exploration prospects and leads. In the longer term, the Group remains committed to growing its asset portfolio and will continue to seek new opportunities in the region to create sustainable value for its stakeholders.”

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