Petronas signs PSCs for DRO clusters to boost gas supply

KUALA LUMPUR: Petronas, through Malaysia Petroleum Management (MPM), yesterday signed production sharing contracts (PSCs) for two “discovered resource opportunities” (DRO) clusters, situated off the coast of Peninsular Malaysia.

The BIGST (Bujang, Inas, Guling, Sepat and Tujoh) Cluster was awarded to Petronas Carigali Sdn Bhd and JX Nippon Oil & Gas Exploration (BIGST) Sdn Bhd, with 50 per cent participating interest each, Petronas said in a statement yesterday.

Meanwhile, the Tembakau Cluster was awarded to IPC Malaysia BV and IPC SEA Holding BV, with 90 per cent and 10 per cent participating interest, respectively, it said.

Petronas senior vicepresident of MPM, Datuk Bacho Pilong, said the signing of the PSCs for the BIGST and Tembakau DRO clusters further reinforces 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 exploration and production industry.

“While the development of resources remains crucial to ensure energy security, we are also making deliberate efforts towards achieving our targets to manage emissions from operations. That is why we have incorporated carbon capture and storage (CCS) technology as part of the development of BIGST Cluster,” he said.

The BIGST Cluster, which was awarded innovative fiscal terms aimed at attracting complex resource monetisation, is now primed for development and is the first high carbon dioxide gas development in Peninsular Malaysia, incorporating CCS technology as part of its value offerings.

“The gas supply from the fields is important for the region’s energy security as it will spur the development of other similar fields,” Petronas said.

Tembakau Cluster is a new addition to IPCM’s existing interests in Malaysia, which comprises two undeveloped sweet gas fields (Tembakau and Mengkuang), awarded as a small field asset PSC, which incorporates a simplified fiscal model and governance process.

“The monetisation of these clusters with an estimated recovery of about four trillion standard cubic feet (Tscf) from BIGST and 260 billion standard cubic feet (Bscf) from the Tembakau Cluster will significantly boost gas supply to the Peninsular Malaysia hub,” it said. — Bernama