Inpex Corp. reached an agreement to transfer a 25% participating interest in the deepwater Block S offshore East Malaysia to Australia-based Santos.
Block S is located in the Sabah basin and covers 574sq km with a water depth ranging from 200m to 1500m.
Large reserves of oil and natural gas have been found in the Sabah basin, such as the Kikeh and the Gumusut-Kakap oil fields discoveries.
Based on a 3D seismic survey and geological and geophysical studies, Inpex plans to drill wildcat wells in 2014 in hopes of discovering oil and natural gas deposits.
Inpex and Petronas acquired the Block as an operator in January 2012.
Inpex and Santos are partners in other projects as well, including Bayu-Undan between Australia and Timor-Leste in addition to several exploration permits near the Ichthys LNG project in northwestern Australia.
Inpex is the operator of Block S and holds a 50% interest along with partners Petronas (25%) and Santos (25%).
At the end of August, Inpex announced a gas discovery at the Lasseter-1/ST1 well in Western Australia, west-northwest of the Ichthys gas-condensate field. Construction started on the US$34 billion Ichthys LNG project in April 2012, just months after final project go-ahead was granted in January 2012. The Ichthys project is expected to initially have the capacity to produce 8.4mtpa of LNG, 1.6mtpa of liquefied petroleum gas, and approximately 100,000b/d of condensate at peak.
Image from Inpex
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