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Inpex said on Monday it had executed a deal with Seascape Energy to acquire 100 percent of the shares in Longboat Energy (2A), a unit of Seascape that will own a 42.5 percent participating interest in the Block 2A production sharing contract.
The Japanese firm will assume operatorship of the block where it will engage in hydrocarbon exploration activities alongside partners Topaz Number One, a unit of Seascape, Petronas Caligari, and Petroleum Sarawak Exploration & Production (PSEP).
Inpex said the completion of the acquisition remains subject to the fulfillment of certain conditions, including approval by Malaysian energy giant Petronas, through Malaysia Petroleum Management (MPM).
The block covers a surface area of about 12,035 square kilometers, in water depths ranging between 180 and 1,390 meters.
Inpex and its partners will henceforth pursue exploration activities as per the title obligations.
The block is located northwest of the Central Luconia hydrocarbon province where recent gas discoveries have been made, according to Inpex.
Inpex said the acquisition will further strengthen its existing ties with Petronas Caligari and PSEP as well as establish a new long-lasting relationship with Seascape.
In addition, Inpex’s operatorship is expected to provide it with long-term access to “promising” exploration prospects in the region, it said.
Bintulu LNG
Seascape said in a separate statement it will receive $10 million in cash on completion of the transcation.
Moreover, Seascape will receive an additional $10 million contingent cash payment payable within 15 days following announcement of a commercial discovery of crude oil or approval by Petronas of a gas holding area, both as defined in the PSC.
Seacape noted that Bintulu LNG, one of the world’s largest LNG export facilities, is located onshore Sarawak.
The Petronas-operated Bintulu LNG complex has a capacity of about 29.3 mtpa and includes MLNG Satu, MLNG Dua, MLNG Tiga, and Train 9, which started commercial operations in 2017.
In 2023, Petronas delivered 403 LNG cargoes from the Bintulu facility, down two cargoes from 2022.
During the first half of this year, Petronas delivered 192 LNG cargoes from the facility.
This is down eight cargoes compared to 200 shipments in the first half of 2023.
