Petronas signs PSCs for clusters offshore Peninsular Malaysia

Petroliam Nasional Berhad (Petronas) signed production sharing contracts (PSCs) for three clusters of discovered resource opportunities offshore Peninsular Malaysia.

The clusters, all marketed under the Malaysia Bid Round Plus Round I, contain a total of 12 oil and gas discoveries in Malay basin close to existing infrastructure.

Two awards are small field asset (SFA) cluster PSCs, designed to incentivize investment in smaller accumulations. One SFA cluster, comprising Bubu, Bunga Tasbih, and Enau fields, was awarded to Ping Petroleum Sdn. Bhd. and Duta Marine Sdn. Bhd.

Jadestone Energy (PM) Inc. was awarded an SFA cluster covering Puteri, Padang, Penara, and North Lukut, fields (100%). Jadestone previously held a 50% non-operated interest in the assets (through PM318 PSC and the Abu, Abu Kecil, Bubu, North Lukut, and Penara PSC) following the company’s entry into Malaysia in August 2021.

Jadestone estimates that the SFA cluster contains about 15 million bbl gross 2C contingent resources and sees upside potential from future infill drilling as well as prospects and leads on surrounding PM428 PSC in which a 60% operated interest was awarded to Jadestone earlier this year.

Jadestone intends to continue its technical assessment of the cluster prior to submission of a field development and abandonment plan to Petronas.

Pertang, Kenarong, Noring, and Bedong fields were awarded to Hibiscus Oil & Gas Malaysia Ltd. (65%) and Petronas Carigali Sdn. Bhd. (35%). The fields lie in water depths of 65-75 m offshore the east coast of Peninsular Malaysia and within tieback distance of the PM3 commercial arrangement area PSC, which is operated by HML. The PSC will run for 24 years.

Additional contracts are expected to be signed in the coming weeks, Petronas said.