The Sarawak government has endorsed the conditional award by Petroleum Sarawak Berhad (PETROS) of a new oil exploration and prospecting (E&P) license to Petra Energy Development Sdn Bhd.

The license is for exploration and prospecting for an onshore block in Miri-Marudi area (northern part of Sarawak), block SK433.

The Chief Minister's Office in a statement said the conditional award is a historic milestone for Sarawak. "It siginifies the operationalisization of the State government's control of oil mining and exploration in all the onshore areas of the State."

"This is a significant milestone for Sarawak as we look forward to the resumption of active exploration and production activities onshore. After a lapse of several years, Petros, as the state-owned petroleum company, will be the one stop centre for the state and playing the role of resource regulator and manager," the CMO said. 

The power to award the E&P license was previously held by Petroliam Nasional Berhad (Petronas), which now has been transferred to PETROS in pursuant to the Commercial Settlement Agreement (CSA) between the Sarawak government and Petronas signed in December last year.