By Ying Xian Wong

Petronas has signed a production-sharing contract with units of France's TotalEnergies SE and London-based Shell PLC for an ultra-deepwater block off the Sabah region of Malaysia.

Petronas, formally known as Petroliam Nasional Bhd., said Thursday that a unit of TotalEnergies will be the project's operator, with a 34.9% participating interest. A Petronas unit will hold a 40% participating interest, while the remainder will be split by two units of Shell.

The ultra-deepwater Block 2K has a depth of up to 3,000 meters and covers 1,952 square kilometers in a proven hydrocarbon basin, the state-run Malaysian energy company said.

The signing completes the licensing of five ultra-deepwater blocks in the area, said Mohamed Firouz Asnan, senior vice president of Malaysia Petroleum Management, a body governing the country's petroleum development.

Oil was discovered in one of the blocks in 2018, and four discovery wells are expected to be drilled in the blocks through 2023, he said.

Write to Ying Xian Wong at yingxian.wong@wsj.com

(END) Dow Jones Newswires

October 13, 2022 02:27 ET (06:27 GMT)

Copyright (c) 2022 Dow Jones & Company, Inc.
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