Malaysia: MBR 2023 awards & MBR 2024 launch

Yesterday saw the launch of 2024 Malaysia Bid Round, along with announcements of the awards from the 2023 bid round. Here are is my initial analysis and I will add more details as I find them.

MBR 2023 - Awards

The 2023 bid round was launched in February 2023 and saw 10 exploration blocks and 2 DROs offered.

Yesterday, awards were announced for 6 exploration blocks and one DRO. A summary of the awards is below (I will add further details as I locate them):

Exploration - Peninsular Malaysia:

• PM-341: Not awarded.
• PM-342: PETRONAS Carigali / E&P Malaysia Venture (EPMV).
• PM-417: Not awarded.
• PM-428: Jadestone Energy / PETRONAS Carigali.
• PM-443: Not awarded.
• PM-445: Not awarded.

Exploration - Sarawak:

• SK-330: PETRONAS Carigali / EPMV / PSEP (PETROS)
• SK-510: PETRONAS Carigali (40%) / INPEX (25%) / Pertamina (25%) / PSEP (PETROS, 10%)
• SK-5E: Shell / PETRONAS Carigali / PSEP (PETROS)

Exploration - Sabah:

• SB-403: PETRONAS Carigali / EPMV / SMJ Energy

DROs

• PM - Chenang Cluster: Not awarded
• SB - Bambazon Cluster: EPOMS

Who are the companies involved:

As expected, PETRONAS Carigali have taken a stake in all of the awarded exploration blocks, with Shell continuing to show their commitment to Malaysia by taking a stake in one Block. For the other companies, a brief summary of who they are and their existing position is provided below:

• E&P Malaysia Venture Sdn Bhd (EPMV): I thought they were a 100% subsidiary of PETRONAS, but could be an independent Malaysian company. They were also awarded acreage in the MBR 2022.
• Jadestone Energy: have taken acreage around their existing producing Peninsular Malaysia acreage. Will be looking for potential tie-backs based on their understanding of the basin.
• Petroleum Sarawak EP (PSEP) / PETROS: the Sarawak state oil company. Have taken a stake in all of the Sarawak awards and continue to grow their position in the upstream assets in the state.
• SMJ Sdn Bhd: the Sabah state oil company. Had their first award in MBR 2022 and continue to take a stake in all new Sabah awards.
• INPEX: continue to take new acreage in Sarawak after taking a stake in SK-418 and SK-4E in MBR 2022. Their current production is limited to an indirect stake in the SK-10 asset. It can be assumed there focus is on the gas potential.
• Pertamina: the Indonesian NOC who have been active in Malaysia since acquiring 30% of Murphy's Malaysia assets back in 2014/2015. They are another company that it is good to see take a fresh interest in exploration.
• EPOMS: a Malaysian service company, making this their first step into upstream ownership.

Trends in recent awards

The chart below summarizes the blocks offered and awarded over the last 3 years' rounds.

The success (awards / offered) for each of the rounds was MBR 2021: 46%, MBR 2022: 62%, MBR 2023: 58%. The MBR + round was released in October 2023 and specifically featured DROs, with awards expected to be announced in May.

MBR 2024

The MBR 2024 was also launched and included five exploration blocks and five DROs. Notably, no acreage was offered in Sarawak.

Exploration - Peninsular Malaysia:

• PM-320 / PM-321 / PM-515

Exploration - Sabah

• SB-304 / SB-306

DRO - Peninsular Malaysia

• Korbu Cluster / Raja Cluster

DRO - Sabah

• Erb South / Kerisi Cluster / Ubah Cluster

Feedback and questions

If you have any information that can improve this article, or questions, then drop me a DM.