Petronas, through Malaysia Petroleum Management (MPM), has signed PSCs for two discovered resource opportunities (DRO) clusters off the coast of Peninsular Malaysia.
The BIGST Cluster has been awarded to PETRONAS Carigali and JX Nippon Oil & Gas Exploration, with each holding a 50% participating interest.
The Tembakau Cluster has been awarded to IPC Malaysia and IPC SEA, with a 90% and 10% participating interest, respectively.
Discovered in the 1970s, the BIGST Cluster comprises five undeveloped high-CO₂ gas fields and is set for development with the integration of carbon capture and storage (CCS) technology.
Petronas stated that the gas supply from these fields is crucial for regional energy security and will encourage the development of similar fields.
The Tembakau Cluster, a new addition to IPC Malaysia's portfolio, includes two undeveloped sweet gas fields and has been awarded as a small field asset (SFA) PSC, featuring a simplified fiscal model and governance process.
The monetisation of these clusters is expected to significantly enhance the gas supply to the Peninsular Malaysia hub, with an estimated recovery of approximately four trillion standard cubic feet from BIGST and 260 billion standard cubic feet from the Tembakau Cluster.
Petronas senior vice-president of MPM Datuk Ir Bacho Pilong said: “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 [exploration and production] industry.
“While the development of resources remains crucial to ensure energy security, we are also taking deliberate efforts towards achieving our targets to manage emissions from operations. That is why we have incorporated CCS technology as part of the development of BIGST Cluster.”
Last month, Petronas awarded PSCs for seven areas as part of the Malaysia Bid Round 2023, which includes six exploration blocks and one DRO cluster across three offshore regions in Malaysia.
These contracts are distributed among two blocks offshore Peninsular Malaysia, three off the coast of Sarawak, and one exploration block and one DRO cluster off the coast of Sabah.
