PETRONAS signs two DRO clusters PSC

PETRONAS, through Malaysia Petroleum Management (MPM), has signed Production Sharing Contracts (PSC) for two Discovered Resource Opportunities (DRO) clusters, situated off the coast of Peninsular Malaysia.

The BIGST Cluster was awarded to PETRONAS Carigali, and JX Nippon Oil & Gas Exploration (BIGST), with 50% participating interest each. Meanwhile, Tembakau Cluster was awarded to IPC Malaysia and IPC SEA Holding, with 90% and 10% participating interest, respectively.

BIGST Cluster, which was discovered in the 1970s is made up of five undeveloped high CO2 gas fields (Bujang, Inas, Guling, Sepat, and Tujoh), and was awarded innovative fiscal terms aimed at attracting complex resource monetisation. It is now primed for development and is the first high CO2 gas development in Peninsular Malaysia, incorporating Carbon Capture and Storage (CCS) technology as part of its value offerings. The gas supply from the fields is important for the region’s energy security as it will spur the development of other similar fields.

Tembakau Cluster is a new addition to IPCM’s existing interests in Malaysia. It comprises two undeveloped sweet gas fields (Tembakau and Mengkuang), awarded as Small Field Asset (SFA) PSC, which incorporates a simplified fiscal model and governance process.

The monetisation of these clusters with an estimated recovery of approximately 4 trillion standard cubic feet (Tscf) from BIGST and 260 billion standard cubic feet (Bscf) from the Tembakau Cluster will significantly boost gas supply to the Peninsular Malaysia hub.

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