SAPURA EXPLORATION & PRODUCTION CONSORTIUM WINS MOST CONTESTED BLOCK IN MEXICO
Date: 29.03.2018.

Kuala Lumpur, 29 March 2018

Sapura Exploration & Production (Sapura E&P), a wholly-owned subsidiary of Sapura Energy Berhad (“the Group”, formerly known as SapuraKencana Petroleum Berhad), together with its joint venture partners DEA Deutsche Erdoel Mexico and Premier Oil have been awarded Block 30 in Sureste Basin, a proven and prolific hydrocarbon province in the Gulf of Mexico.

“This is a formidable partnership of like-minded companies with significant worldwide experience, which augurs well for future success in Mexico,” said Tan Sri Dato’ Seri Shahril Shamsuddin, President and Group Chief Executive Officer, Sapura Energy Berhad.

Block 30, which is located in shallow waters at about 70 metres, directly to the south west of Premier's world-class Zama discovery and to the north of the Amoca oil field, was the most contested block in the bid. The consortium outbid six other bidders for the block.

“Sapura Energy has been operating in Mexico since late 2012 and has worked closely with PEMEX on a number of offshore projects. The Sureste Basin is not unknown territory, the shallow water operating conditions are similar to Malaysia and our team is on familiar ground,” said Tan Sri Shahril.

The consortium has identified material leads and prospects on Block 30 in the tertiary clastic plays, typical of the Sureste Basin and in which Premier made the world-class Zama discovery in July 2017.  The main prospect exhibits DHIs (direct hydrocarbon indicators) on the existing 3D seismic across the southern edge of Block 30, significantly de-risking a potentially material oil play there. These anomalies are similar to those seen at the Zama and Amoca oil fields. The plan is to acquire a 3D seismic in 2019 ahead of firming up drilling locations in 2020.

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.

The agreement enhances the Group’s global footprint as a world-class integrated oil and gas player with a presence across five continents. Recently, Sapura E&P made inroads into New Zealand with a series of farm-in agreements to five offshore exploration permits within the Taranaki Basin, a prolific oil and gas region. The farm-in agreements are with OMV New Zealand Limited and Mitsui E&P Australia Pty Limited.