Joint venture formed for new exploration

KUALA LUMPUR, Malaysia, Dec. 31 (UPI) -- Malaysia's Petronas said it will enter a production-sharing contract for the exploration and production of natural gas in offshore Sabah in east Malaysia.

The PSAs involve Royal Dutch Shell, ConocoPhillips and Petronas' exploration unit Petronas Carigali Sdn Bhd.

Petronas Carigali will hold a 40-percent stake in the contract to explore the Kebabangan Cluster fields, while Shell Energy Asia Ltd. and ConocoPhillips Sabah Gas Ltd. will take a 30-percent stake each. A joint operating company, Kebabangan Petroleum Operating Co. Sdn Bhd, has been formed to operate the venture.

Natural gas produced from the fields will be piped to the Sabah oil and gas terminal now under construction.