ENEOS Xplora Malaysia has extended its Production Sharing Contract for Block SK10 offshore Sarawak, Malaysia, with PETRONAS until 2038. The block, operational since 2003, supplies LNG to East Asia, accounting for 4% of Japan’s imports. The company will continue as Operator, ensuring stable regional energy supplies.
ENEOS Xplora Inc. has announced that its subsidiary, ENEOS Xplora Malaysia Limited (President: Shinji Oka), has finalized an agreement with Petroliam Nasional Berhad (PETRONAS), Malaysia's state-owned oil and gas company, to extend the Production Sharing Contract (PSC) for Block SK10. Located offshore Sarawak, Malaysia, this contract extension will be effective for an additional 10 years, from 2028 to 2038.
The SK10 PSC was initially awarded in 1987 to ENEOS Xplora Malaysia and PETRONAS Carigali Sdn. Bhd. (PCSB), with Xplora Malaysia designated as the Operator. The Helang field began production in 2003, marking the start of successful output from the block. Since then, Xplora Malaysia has executed multiple development initiatives, which have resulted in the addition of the Layang and Beryl fields to the production portfolio in 2017 and 2018, respectively.
Gas extracted from the SK10 PSC is transported to a liquefaction plant located in Sarawak, where it is processed into Liquefied Natural Gas (LNG). The LNG is subsequently exported to various East Asian markets, including Japan. Notably, LNG from Block SK10 represents around 4% of Japan’s total annual LNG imports, highlighting the block's vital role in contributing to the region's energy stability.
The 10-year contract extension ensures that ENEOS Xplora Malaysia will continue operating the SK10 PSC. The company is committed to leveraging its technical capabilities and in-depth operational experience to further develop the block’s resources and enhance output. This continued collaboration underscores ENEOS Xplora’s strategic efforts to strengthen energy partnerships in Southeast Asia and support the growing demand for reliable, cleaner energy sources in East Asia.
With the extended contract, ENEOS Xplora Malaysia reaffirms its commitment to maximizing the potential of SK10 PSC while reinforcing the stable energy supply chain for key markets, particularly Japan. The initiative aligns with broader energy security goals, ensuring sustainable production and export of LNG from Malaysia to global markets.
Established on October 14, 1987, ENEOS Xplora Malaysia Limited is engaged in the exploration, development, and extraction of petroleum, natural gas, and other mineral resources in Malaysia. Headquartered at ENEOS Building, 1-1-2 Otemachi, Chiyoda-ku, Tokyo, Japan, the company operates under the leadership of President Shinji Oka. With a capital of 13.1 billion Japanese Yen, its ownership structure comprises ENEOS Xplora Inc. holding a 78.7% stake, INPEX Corporation owning 15.0%, and Mitsubishi Corporation with 6.3%. The company plays a strategic role in Japan’s overseas energy development initiatives, contributing to long-term resource security.
