The national oil company said under the terms of the PSC, PTTEP’s unit PTTEP HK Offshore Ltd would operate the block with participating interest of 42.5 per cent, while KPC’s overseas exploration and production arm Kuwait Foreign Petroleum Exploration Co (Kufpec), through Kufpec Malaysia (SK-410B) Ltd, held another 42.5 per cent.

Petronas Carigali Sdn Bhd, meanwhile, has a 15 per cent interest.

“The signing not only marks Petronas’ first PSC award in 2016, but also welcomes PTTEP for its first operatorship in Malaysia. We are also pleased to collaborate with our long-term partners, Kufpec once again,” Petronas executive vice-president (upstream) Datuk Mohd Anuar Taib said during the ceremony.

The PSC was signed at Petronas Twin Towers attended also by Petronas president and chief executive officer (CEO) Datuk Wan Zulkiflee Wan Ariffin.

PTTEP president and CEO Somporn Vongvuthipornchai, Kufpec vice-president of operations Hosnia Hashim and Petronas Carigali CEO Mohamad Johari Dasri.

Somporn, in a statement, said: “Malaysia is renowned as being an area in South-East Asia of high petroleum potential.

“From 2011-2015 oil and gas were discovered continually and SK410B is situated in an area where there have been considerable natural gas discoveries.

“Furthermore the acquisition of this block is in alignment with PTTEP’s strategy for future growth.”

Somporn said PTTEP and its partners planned to conduct 3D seismic surveys and drill one exploration well during the three-year exploration period.