Multiple oil & gas firms ink deals for 12 fields offshore Malaysia

Malaysia’s energy giant Petronas has signed production sharing contracts (PSCs) with several oil and gas players for three clusters of discovered resource opportunities (DRO) situated offshore Peninsular Malaysia as part of the first round of Malaysia Bid Round Plus (MBR+).

The Malaysian heavyweight has handed out awards for three blocks within Peninsular Malaysia’s Malay basin. As these oil and gas assets are located in what is said to be a proven hydrocarbon basin and near existing infrastructure, the firm believes their development offers monetization opportunities.

Under the small field asset (SFA) cluster PSC, one cluster comprising Bubu, Bunga Tasbih, and Enau fields was awarded to Ping Petroleum and Duta Marine, while Jadestone Energy won another, consisting of Penara, Puteri, Padang, and North Lukut fields.

Hibiscus Oil & Gas Malaysia and Petronas Carigali won the award for the third cluster – the Pertang, Kenarong, Noring, and Bedong fields – under the Improved Revenue Over Cost terms. Additionally, Petronas expects to sign more PSCs over the next few weeks.

“We are delighted to see our operators continue to expand their portfolio in Malaysia. Their niche technical expertise and agility are crucial in navigating the unique challenges of monetising and developing DRO assets expediently and safely,” noted the Senior Vice President of Malaysia Petroleum Management (MPM), Datuk Ir. Bacho Pilong. 

Introduced in October 2023, the MBR+ complements the annual Malaysia Bid Round licensing by giving investors an additional opportunity to participate in DRO and late-life assets in Malaysia. The new awards are said to be part of Petronas’ efforts to ensure energy security in the country while striving to decarbonize operations in line with its goal of achieving net-zero emissions by 2050.

Alongside in-country activities, the Malaysian firm is working on developing Canada’s first (LNG) export facility in Kitimat, British Columbia with the operator, Shell, and other partners PetroChina, KOGAS, and Mitsubishi. The facility recently witnessed the final weld on its first production train, with first LNG shipment expected by mid-2025.