Petronas awards contracts

Petronas awards contracts

KUALA LUMPUR (AFP): Malaysia's national oil firm Petroliam Nasional Bhd. (Petronas) yesterday awarded three production sharing contracts to its unit Petronas Carigali and three companies of Shell Malaysia.

The pacts were for exploring new gas and oil reserves in two offshore blocks in eastern Sarawak and Sabah state, and a deepwater block in Sabah, said Petronas president and chief executive Mohd. Hassan Marican.

Petronas Carigali would team up with Sarawak Shell Bhd., Sabah Shell Petroleum Company and Shell Sabah Selatan for the three contracts involving a minimum investment of 115 million ringgit (US$46 million), he said.

Mohd. Hassan said Petronas has focused on attracting continued investments for exploration to enhance the nation's hydrocarbon reserves and maintain the growth of the petroleum industry, he said.

Malaysia production of liquefied natural gas is expected to increase to 23 million tons annually by 2001, making it the world's second largest producer of after Indonesia, he added.