Malaysias Petronas signs PSCs to boost gas supply

Malaysia’s state-owned Petronas, through Malaysia Petroleum Management (MPM), has signed production sharing contracts (PSCs) for two discovered resource opportunity (DRO) clusters with potential gas reserves offshore peninsular Malaysia.

The BIGST DRO cluster has an estimated recovery of 4 trillion ft³, and was awarded to Petronas Carigali and upstream firm JX Nippon Oil and Gas Exploration, each with a 50% participating interest. The cluster is made up of five undeveloped high-CO2 gas fields, namely the Bujang, Inas, Guling, Sepat, and Tujoh fields.

The Tembakau cluster comprises two undeveloped sweet gas fields and has an estimated recovery of 260bn ft³. It was awarded to oil and gas exploration firm International Petroleum (IPC) Malaysia and IPC SEA, which have 90% and 10% shares respectively.

The monetisation of these clusters “will significantly boost gas supply to the peninsular Malaysia hub,” said Petronas. Fossil fuels will remain in Malaysia’s energy mix, and Petronas intends to continue investing in gas exploration and production to ensure energy security. Petronas manages Malaysia’s oil resources through MPM.

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