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Petronas awards four new production sharing contracts, brings total to 18 for 2024

KUALA LUMPUR: Petroliam Nasional Bhd (Petronas) through Malaysia Petroleum Management (MPM), has announced the awarding of production sharing contracts (PSCs) for three Discovered Resource Opportunities (DRO) Clusters and one exploration block under the Malaysia Bid Round (MBR) 2024.

The new awards bring the number of PSCs awarded this year to 18.

Under the Small Field Asset PSC, the RAJA cluster—comprising the Rhu, Ara, and Janglau fields and located offshore Peninsular Malaysia— was awarded to Dialog Resources Sdn. Bhd.

Similarly, the Erb South field was awarded to EPOMS Sdn. Bhd.

The Ubah Cluster, situated off the coast of Sabah and comprising the Ubah, Rempah, Bagang, Batai, and Biris fields, was granted under the Deepwater Revenue-over-Cost PSC to ConocoPhillips Malaysia New Ventures Limited, Sabah Shell Petroleum Company Limited, and Petronas Carigali Sdn Bhd (PCSB).

Meanwhile, Block PM515, an exploration block, was awarded to PCSB and E&P Malaysia Venture Sdn. Bhd. under the Enhanced Profitability Terms PSC.

MPM senior vice president Datuk Ir. Bacho Pilong expressed satisfaction with the petroleum arrangement contractors expanding their portfolios in Malaysia.

"With their strong track records and proven capabilities, they continue to contribute significantly to the growth of Malaysia's petroleum sector.

"Block PM515 holds great potential for significant discoveries while the DRO Clusters are primed for accelerated development due to their sizable resources and proximity to nearby facilities."

"The Ubah Cluster can greatly benefit from integration with the Kebabangan field, especially considering that both are operated by the same contractors – this integration can lead to various synergies and advantages for the operations of both fields," he said.

Bacho Pilong said 2024 marks another successful year with the award of 18 PSCs across exploration, DRO and Late Life Asset.

"This is a testament of investors' confidence in Petronas' innovative asset offerings with high monetisation potential, solidifying Malaysia's position as a preferred destination for upstream investments," said Bacho Pilong.

Petronas is preparing for MBR 2025 in the first quarter of next year, presenting investors with promising opportunities to explore Malaysia's upstream oil and gas potential.

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