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Oman Business News

Oman-based E&P firm inks pact with Sarawak's Petros

PetroTel Energy Oman LLC (PTO), a subsidiary of US based PetroTel Energy — a privately held exploration and production (E&P) company — has inked a deal with Petroleum Sarawak Berhad (Petros), the oil and gas company wholly owned by the Malaysian state of Sarawak. The Memorandum of Understanding (MoU), signed in Muscat late last week, underscores the growing international appeal of Oman-based E&P players, given their formidable technical skills garnered in harnessing the hydrocarbon potential of some of the most technologically challenging reservoirs in the world.

Parent company PetroTel Energy, which is headquartered in Texas-USA, is one of the largest players in Oman's upstream sector with as many as four oil and gas blocks in its portfolio. In addition to its assets in the Musandam peninsula (onshore Block 17 and offshore Block 40), the company also operates a pair of concessions in Dhofar Governorate (onshore Block 67 and offshore Block 39). According to Malaysian media reports, the MoU was signed against the backdrop of the visit of Datuk Patinggi Abang Johari Tun Openg, Chief Minister of Sarawak, to the Sultanate. It marked the maiden agreement of Petros, a newly formed state-owned oil and gas company that was set up in August last year with a mandate to work with Malaysian national oil company Petronas.

Separately, PetroTel signed an agreement with South Sea Energy (SSE), a Sarawak affiliated independent oil and gas exploration and production company with assets in the Middle East and South East Asia. SSE is a partner with PetroTel Energy in development of Block 17 onshore Oman's Musandam peninsula.

The pacts were hailed as auguring well for increased collaboration between energy firms in the Sultanate and Sarawak. Aside from opportunities for cooperation in the upstream energy sector, the delegation from Sarawak also held out the potential for collaboration in the development of downstream oil and gas industries in the Malaysian state.

"Oman and Sarawak have some similarities demographically and as oil producing states that would augur well for enhancing bilateral ties between the two economies," Chief Minister Abang Johari was quoted as stating.

Representing PetroTel Energy Oman at the MoU signing were Dr Anil Chopra, Chairman and Chief Executive, and Mike Lucich, Chief Operating Officer.
  • Oman
  • Petrotel
  • Sarawak Berhad Petros
  • Oil and Gas
  • MoU
  • Malaysia
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