Fossil Energy – Production Sharing
International Petroleum Corp.’s (IPC) Malaysian subsidiaries have signed a letter agreement with Petronas on extending the production sharing contract (PSC) for offshore Block PM 307, which covers the producing Bertam Field.
The PSC, which was previously in place until Aug. 15, 2025, now runs through Aug. 14, 2035.
IPC CEO Mike Nicholson said: “This extension allows IPC to continue to produce light oil from the Bertam Field and to review further potential opportunities within the PM 307 PSC area in Malaysia. It is mutually beneficial for both IPC and Petronas, facilitating continued production from a field, which has a proven track record of safe, stable operations with high uptime from the existing facilities.”
“IPC has agreed to review further potential infill drilling opportunities in, and conduct studies on, the PM 307 PSC area.”
During the nine months ending Sept. 30, 2022, Bertam produced on average 5,150 bbl/d of oil, and the company has raised its estimate of remaining 2P reserves to 3 MMbl.
Completion of the agreement remains subject to the finalization of amendment documentation, which should take place during first-quarter 2023.