New Player Enters Malaysian Offshore Oil And Gas Sector

Malaysia’s state-owned energy company Petronas has awarded a production sharing contract (PSC) for Block PM524 offshore Malaysia to Posco International and Petronas Carigali.

The South Korea-based Posco International was awarded the operatorship with an 80 percent participating interest while Petronas Carigali, Petronas’ wholly-owned subsidiary, was given the remaining 20 percent.

The PSC was signed in a virtual ceremony by Petronas’ Senior Vice President of Malaysia Petroleum Management, Mohamed Firouz Asnan, Posco International’s Chief Executive Officer Si-Bo Joo, and Petronas Vice President of Malaysia Assets, Upstream, and PCSB Chief Executive Officer Hasliza Othman.

Petronas Executive Vice President & Chief Executive Officer of Upstream, Adif Zulkifli, was also present at the signing.

Block PM524 is located in the prolific area of the Malay Basin, surrounded by several producing fields including Tangga Barat that supplies gas to the Peninsular Malaysia market.

“We welcome Posco International to Malaysia’s upstream oil and gas industry, and as a new player in Malaysia, they bring their experiences of operating gas fields in other parts of this region, including the technological development of Carbon Capture and Storage,” Firouz said.

“This award further reinforces Malaysia’s attractiveness as a destination for companies seeking to grow their energy portfolio and thrive in energy transition.

“Under our right asset, right player strategy, supported by a progressive fiscal regime, we hope to fully maximise the long-term value of the hydrocarbon resources in Malaysia, especially in Peninsular Malaysia where the demand is expected to increase,” he added.

To contact the author, email bojan.lepic@rigzone.com