Situated in the area where vast reserves of oil and natural gas, including the Kikeh and the Gumusut-Kakap oil fields were identified, the block covers an area of 672km2 with a water depth ranging from 100m to 1,400m.
Santos Sabah Block R, a unit of Santos, has signed a separate agreement to purchase a 10% participating interest in the block from JX Nippon Oil & Gas Exploration (Deepwater Sabah).
The deals bring Santos’ total participating interest in the block to 20% after the completion of due procedures.
Currently, Inpex Offshore South West Sabah owns a 37.5% participating interest in the block and undertakes exploration activities alongside operator JX and Petronas Carigali.
Inpex and Santos are jointly undertaking various oil and gas exploration and production activities such as the Bayu-Undan project in the Joint Petroleum Development Area between Australia and Timor-Leste.
