Petronas, through Malaysia Petroleum Management (MPM), has signed production sharing contracts (PSCs) for two discovered resource opportunities (DRO) clusters, located offshore 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 with innovative fiscal terms aimed at attracting complex resource monetization.
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 Tembakau Cluster will significantly boost gas supply to the Peninsular Malaysia hub.
“The signing of the BIGST and Tembakau DRO clusters PSCs further reinforce Malaysia’s position as an attractive destination for industry players seeking to grow their energy portfolio and thrive in the energy transition with Malaysia’s differentiated barrels.
“These awards, in addition to the signing of seven new PSCs earlier this year were the result of MPM’s ongoing efforts in promoting Malaysia Upstream, and a testament to investors’ confidence in Malaysia’s E&P industry,” said Bacho Pilong, Petronas’ Senior Vice President of MPM.