October 13, 2022 [Reuters] – Malaysia’s Petronas has signed a production sharing contract with subsidiaries of TotalEnergies (TTEF.PA) and Shell Plc (SHEL.L) for an ultra-deepwater block located off the coast of Sabah.

Called 2K, the block covers 1,952 square kilometers and is located in an area “within a proven hydrocarbon basin with promising hydrocarbon potential,” Petronas said in a statement on Thursday.

The production sharing contract was signed between TotalEnergies EP Malaysia, Sabah Shell Petroleum Co Ltd, Shell Sabah Selatan Sdn Bhd, and Petronas’ upstream unit, Carigali Sdn Bhd.

TotalEnergies EP Malaysia will be the operator, with a 34.9% participating interest, while Petronas Carigali will hold a 40% ,interest, Petronas said.

The remaining participating interest is split equally between the Shell subsidiaries.

A total of four wells are expected to be drilled in Block 2K and four other ultra-deepwater blocks off the coast of Sabah in 2022 and 2023.

Reporting by Emily Chow

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