Malaysian debutant eyes early monetisation of offshore asset



Independent Skye UMDP Exploration has ambitious plans for its first ever E&P asset — the Block PM 340 production sharing contract offshore Peninsular Malaysia, which it was awarded from the Malaysia Bid Round (MBR) 2022.

Block PM 340 in the Malay basin is surrounded by several discoveries and producing fields.

Skye UMDP envisions exploring the block, identifying new hydrocarbon resources with upside potential and — through deployment of fit-for-purpose technologies — plans to create value via the early monetisation of discovered resources on the block, potentially availing itself of existing infrastructure.

The offshore asset includes three discovered fields — Bunga, Tanjung Merah and Ulah — said to contain a combined 400 billion cubic feet of gas.

This 14,000-square-kilometre tract, which is three times the size of a typical Malaysian block, also hosts 14 prospects with up to a total of 669 million barrels of oil equivalent in place.

“Many exciting plays and opportunities have been identified here… distinctive channel features which have been successfully proven to contain hydrocarbons [are] demonstrated in the north of PM 340,” Petronas senior vice president of Malaysian Petroleum Management, Mohamed Firouz Asnan, earlier said.

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Block PM 340 had also been offered in MBR 2021 when it was the northernmost acreage up for grabs but it was not awarded from that licensing exercise.

Skye UMDP is a joint venture between Malaysia’s UMD Petroleum and Australian technical partner Skye Energy Ventures.

The joint venture will operate Block PM 340 with a 50% interest on behalf of sole partner, Malaysia’s national upstream company Petronas Carigali, which has the remaining 50% equity.

UMD Petroleum started life as an engineering, procurement, construction, installation and commissioning contractor before building up a sub-surface team ahead of making its upstream debut.

Group chief executive Shahrin A Wahab described the award of the Block PM 340 PSC as a “tremendously challenging opportunity to prove the local company’s capability to venture into the upstream [arena] with… support of local financial institutions”.

Skye UMDP executive director Suhaimi Abdul Manaf added “that it is evident that Petronas is indeed promoting capable local companies to venture into the upstream industry”.