ConocoPhillips and Shell among winners of oil & gas acreage offshore Malaysia

Malaysia’s state-owned energy giant Petronas has signed production sharing contracts (PSCs) with multiple partners for three discovered resource opportunities (DRO) clusters and one exploration block as part of the Malaysia Bid Round (MBR) 2024.

The PSCs with oil and gas discoveries located offshore Peninsular Malaysia and off the coast of Malaysia’s Sabah state cover nine fields and one exploration block. They were awarded through Petronas’ subsidiary Malaysia Petroleum Management (MPM) under the call launched earlier this year.

According to the Malaysian major, the resources are situated within proven hydrocarbon basins, near existing infrastructure, thus offering monetization opportunities. A few months ago, the energy heavyweight awarded several PSCs under Malaysia Bid Round Plus (MBR+), which complements the annual Malaysia Bid Round. 

“The year 2024 marks another successful year with the award of 18 PSCs across exploration, DRO and Late Life Asset. This is a testament of investors’ confidence in PETRONAS’ innovative asset offerings with high monetisation potential, solidifying Malaysia’s position as a preferred destination for upstream investments,” said MPM’s Senior Vice President, Bacho Pilong.

One small field asset (SFA) PSC, the RAJA cluster, was awarded to Dialog Resources. Located offshore Peninsular Malaysia, the cluster comprises Rhu, Ara, and Janglau fields. EPOMS won the contract for the second SFA PSC, containing the Erb South field.

The Ubah cluster went to ConocoPhillips Malaysia New Ventures Limited, Sabah Shell Petroleum Company Limited, and Petronas Carigali under the deepwater revenue-over-cost PSC. Situated off the coast of Sabah, the cluster covers five fields – Ubah, Rempah, Bagang, Batai, and Biris.

Additionally, exploration Block PM515 was awarded to PCSB and E&P Malaysia Venture under the enhanced profitability terms PSC. 

“Block PM515 holds great potential for significant discoveries while the DRO Clusters are primed for accelerated development due to their sizeable resources and proximity to nearby facilities,” noted Pilong.

“The Ubah Cluster can greatly benefit from integration with the Kebabangan field, especially considering that both are operated by the same contractors – this integration can lead to various synergies and advantages for the operations of both fields.”

Since Petronas says it wants to reinforce the country’s position as an “attractive” destination for upstream investments, it is getting ready for the next bid round, MBR 2025, scheduled for the first quarter of 2025. 

Last week, the state-owned player inked a 15-year deal with ADNOC to gain access to 1 million tonnes per annum (mtpa) liquefied natural gas (LNG) from the latter’s Ruwais LNG plant under development in Al Ruwais Industrial City, Abu Dhabi.