UK-based oil and gas company EnQuest, on behalf of the PM8 extension (PM8E) production sharing contract (PSC) parties, has signed a new agreement to develop approximately 155 billion cubic feet (bcf) of additional Seligi field gas resources with Petronas through Malaysia Petroleum Management.

This development, effective from 1 January 2025, will see EnQuest holding a 50% equity share. Petronas Carigali and E&P Malaysia Venture also form part of the PM8E PSC parties.

The agreement supports the PM8E PSC parties in developing and commercialising non-associated gas resources within the PM8E contract area.

Furthermore, the parties have reached an agreement on the key terms of the PM8E upstream gas sales agreement, which covers the supply of natural gas produced from the PM8E PSC.

EnQuest, primarily operating in the North Sea, expanded beyond its core UK market in 2014 by acquiring a stake in Malaysia's PM8/Seligi oilfield.

In May 2023, the company signed an agreement with Petronas to enhance gas production from the Seligi field using existing infrastructure, with operations planned until the end of 2025.

The new development aligns with anticipated demand, with the supply of around 70mscf/d of sales gas.

By modifying its existing infrastructure, EnQuest will produce the additional Seligi Field non-associated gas in a cost-efficient manner.

This initiative will contribute to meeting Peninsular Malaysia's growing energy needs and is expected to enhance the gas component of EnQuest's production portfolio, supporting the Group's strategic goal to reduce its overall carbon intensity.

EnQuest CEO Amjad Bseisu said: "I am pleased with the signing of this agreement, which enables EnQuest to develop and supply non-associated gas through our existing infrastructure. We look forward to collaborating with our partners in delivering on our commitments and we thank PETRONAS for their continued trust and confidence.

“Malaysia is a key area for EnQuest's growth strategy, and this agreement complements the signing of the DEWA Complex Cluster SFA PSC in October this year."

EnQuest Malaysia general manager and country head Ahmed Radzif said: "The trust PETRONAS has shown in our ability to develop and deliver Seligi Field NAG is a responsibility we are delighted to take on and recognises our ten years of operating PM8E PSC in a safe and efficient manner. We look forward to delivering our gas sales commitments and remain focused on continuing to grow the business here in Malaysia."