KUALA LUMPUR: Petroliam Nasional Bhd (Petronas), through Malaysia Petroleum Management (MPM), has awarded Petra Energy Bhd the late life asset production sharing contract (LLA PSC) for the Banang field offshore Peninsular Malaysia effective from June 1.
Petra today said it bagged the contract through subsidiary Petra Energy Development Sdn Bhd (PEDSB).
The Banang field is located about 70 kilometres from Kuala Terengganu.
Petra executive director and group chief executive officer Datuk Anthony Bujang said the company thanked Petronas for the contract and continued confidence and trust in its capabilities.
"This award is a testament to Petra's track record and unwavering commitment to move up the value chain as an operator. With our experience at the Banang field, we are well-equipped to ensure operations are conducted safely and efficiently," said Anthony.
According to Petra, PEDSB is in a good position to undertake the PSC, having first commenced work at the Banang oilfield in 2012, under a successful risk sharing contract arrangement as a partner in Coastal Energy (KBM) Sdn Bhd for the Kapal Banang Meranti cluster.
This later transitioned to a technical services agreement in June 2020 with PEDSB operating the Banang oilfield on behalf of Petronas.
"The recent award of the PSC to PEDSB represents our strategic progression into an upstream PSC operator, reinforcing our commitment and growing capabilities within the field," it added.
The contract also augments PEDBS's operatorship portfolio as PEDSB is also the operator of Block SK433, onshore Miri Sarawak with Petroleum Sarawak, which was awarded in July 2021.