KUALA LUMPUR: Sapura Energy Bhd's unit Sapura Exploration and Production and consortium partners DEA Deutsche Erdoel Mexico and Premier Oil have signed a production sharing contract for Block 30 with Comision Nacional De Hidrocarburos of Mexico.
Sapura Energy described Block 30, within the Sureste Basin, as a proven and prolific hydrocarbon province in the Gulf of Mexico.
The consortium had outbid six other bidders for this most contested block during the recently concluded shallow water bid round.
The signing ceremony took place in Mexico City on Wednesday where Sapura Energy was represented by president and group chief executive officer Tan Sri Shahril Shamsuddin.
Also present was Mexcio secretary of energy Pedro Joaquín Coldwell and CNH commissioner president Juan Carlos Zepeda Molina.
“We are proud to be the only Malaysian-owned company to be awarded during this bidding round, together with our partners.
“This is a significant milestone for Sapura Energy group in reinforcing our position in the industry, establishing our presence in Mexico and growing our E&P portfolio,” Shahril said in a statement today.
Block 30 is located in shallow waters of about 70 metres deep, directly to the south west of Premier's world-class Zama discovery and to the north of the Amoca oil field.
The shallow water operating conditions within Block 30 are similar to Malaysia where Sapura E&P is well recognised.
Sapura Energy has been operating in Mexico since late 2012 and has worked closely with Mexican state-owned petroleum company, Petróleos Mexicanos, on a number of offshore projects which brings familiarity to local commercial conditions in Mexico.
Sapura E&P entered into the bidding agreement with DEA and Premier based on an equity split of DEA 40 per cent, Sapura Energy 30 per cent and Premier 30 per cent.