Petronas signs PSCs for Discovered Resource Opportunities clusters
State-owned Petronas, through Malaysia Petroleum Management (MPM), has signed production sharing contracts (PSC) for two Discovered Resource Opportunities (DRO) clusters located off the coast of Peninsular Malaysia, it said on February 28.
The BIGST Cluster, awarded to Petronas Carigali and JX Nippon Oil & Gas Exploration, features a 50% participating interest from each party. Simultaneously, the Tembakau Cluster has been awarded to IPC Malaysia and IPC SEA Holding, with a 90% and 10% participating interest, respectively.
“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,” Petronas senior vice president of MPM, Datuk Ir Bacho Pilong said.
BIGST Cluster, which was discovered in the 1970s is made up of five undeveloped high CO2 gas fields (Bujang, Inas, Guling, Sepat and Tujoh). The Tembakau Cluster consists of two undeveloped sweet gas fields, Tembakau and Mengkuang.
The monetization of these clusters, with an estimated recovery of approximately 4 trillion ft³ from BIGST and 260bn ft³ from the Tembakau Cluster, will substantially enhance gas supply to the Peninsular Malaysia hub, reinforcing Petronas's position in the energy market, according to Petronas.
In addition to its role in issuing licenses and managing petroleum arrangements in Malaysia, MPM acts as the country's oil and gas industry shaper and investment enabler, guiding the development of petroleum resources in Malaysia.