Petronas awards South East Collins Cluster PSC to Vestigo

KUALA LUMPUR: Petroliam Nasional Bhd (Petronas) has awarded the production sharing contract (PSC) for the South East Collins Cluster, under the newly introduced Small Field Asset (SFA) PSC terms, to Vestigo Petroleum Sdn Bhd.

The South East Collins Cluster, located in water depths of 42 to 45 metres 70 kilometres north east of Labuan Island, comprises two fields, namely South East Collins and Lokan which were discovered in the 1980s, Petronas said in a statement.

“With a combined estimated recoverables of 10 million stock tank barrels (mmstb), the South East Collins Cluster is now primed for development under the new SFA PSC terms,” it said.

The PSC was signed on Wednesday whereby Petronas was represented by its senior vice president of Malaysia Petroleum Management Mohamed Firouz Asnan, while Vestigo chief executive officer Hazanie Jamian signed on behalf of the company.

Mohamed Firouz said the award of the cluster of fields under the much-anticipated new fiscal terms was expected to spur the development and production of more small fields in the future.

“The new SFA PSC is aimed at monetising an inventory of small discovered resource opportunities available in Malaysian waters. Vestigo was chosen based on its track record as a low-cost operator in developing and operating small fields. For many of these fields to work, we need operators with the right mindset and business model to take advantage of the customised fiscal and nonfiscal terms offered by Petronas. Under the current volatile oil prices, these operators must also employ innovative solutions to ensure the lowest total life cycle cost,” he added.