Longboat Energy, an oil and gas company so far mostly focused on offshore oil and gas operations offshore Norway, is expanding internationally with the recent award of an offshore exploration block in Malaysia.
Longboat said Wednesday it had won a Production Sharing Contract (“PSC”) for Block 2A, a large exploration block offshore Sarawak, Malaysia, "with material gas resource potential."
The news comes a week after Longboat, "responding to speculation," said it was in "advanced discussions with a number of parties regarding several opportunities across all phases of the E&P cycle in the Southeast Asia region."
Longboat said Wednesday that the Block 2A award came as part of the Malaysian Bid Round (‘MBR’) 2022, an annual licensing round organized by Malaysia Petroleum Management (MPM), with PETRONAS as the custodian of petroleum resources in Malaysia.
Longboat will become the operator with a 36.75% interest in the PSC alongside partners Petronas Carigali Sdn. Bhd (40%), Petroleum Sarawak Exploration & Production Sdn. Bhd. (7.5%) and Topaz Number One Limited (15.75%).
"Block 2A is offshore Sarawak, north-west of the prolific Central Luconia hydrocarbon province, outboard of recent gas discoveries. The Block covers approx. 12,000 km2 and is located in water depths of between 100-1,400 meters. One of the world’s largest LNG facilities, the Bintulu LNG plant, is located onshore on the coast of Sarawak," Longboat Energy said.
According to the oil and gas company, established by ex-Faroe Petroleum executives, a number of large prospects across multiple plays have been identified across Block 2A.
"The main prospect is a large anticlinal structure called Kertang with a closure of over 100km2 at multiple levels and significant volume potential representing multiple trillions of cubic feet of gas in stacked reservoirs.
"Seismic indicators for the presence of gas can be observed in the area and over the crest of the prospect. These indicators, together with geochemical analysis of sea floor samples over the main prospect provide strong evidence of the area being gas-prone," Longboat Energy said.
Helge Hammer, Chief Executive of Longboat, commented: "We are delighted to have been awarded Block 2A, which marks our entry into Malaysia, where our management team and partners have extensive past experience.
"This potentially significant opportunity has been acquired without a material initial cost obligation and with three years until a drill decision. By establishing a presence in Malaysia and building a relationship with Petronas, we are significantly expanding Longboat’s opportunity set.”