New Petronas PSC for Enquest

Malaysia PSC: EnQuest chief executive officer Amjad Bseisu

UK-lISTED Enquest is set to take over from supermajor ExxonMobil two mature upstream assets off Peninsular Malaysia, under a new production sharing contract with Malaysia’s state-owned Petronas Carigali.

Enquest is close to concluding with Petronas Carigali a 50:50 PSC lasting for up to 30 years for the Seligi field and Block PM-8 held by ExxonMobil, sources said.

The PSC deal — likely to be unveiled later this week — is expected at first to involve brownfield work including in-fill drilling and modification or upgrading of existing production platforms.

Enquest is understood to have picked up the PSC after cornerstone investor of start-up Ping Petroleum, Energy XX1, pulled the plug on a deal for Seligi that it was discussing with Petronas.

Just months after winning a risk service contract for the Tanjung Baram field with Petronas, the UK-listed independent was able to pool together the funds and exploration and development proposal to win the brownfield PSC from Petronas.

The new operator of Seligi and PM-8 is likely to bring in its Tanjung Baram RSC partner, Kuala Lumpur-listed Uzma, for support in executing the new agreement.

The deal will see ExxonMobil parting with two of five PSCs — PM8 and the 1976 PSC containing the Seligi field, PM5, the 1995 PSC and the Gas PSC — it used to hold off Peninsular Malaysia.

In recent years, the supermajor had concentrated on bringing on stream the new Damar and Telok fields under the Gas PSC. Production at Seligi, once its crown jewel, fell to a low of 5000 to 6000 barrels per day, according to sources.

Seligi is also set to be excluded from the list of seven mature fields targeted for enhanced oil recovery under a separate PSC signed between ExxonMobil and Petronas. Seligi hosts a central processing platform tied in to at least seven satellite structures. The host CPP also supports production from the Raya-A oil discovery in Block PM-5.

Petronas is alo said to have issued a letter of intent to Calgary-based Talisman Energy for a second brownfield PSC off Peninsular Malaysia.

Sources said Talisman is in the process of raising funds to fulfill capital requirements set out as conditions for the PM-9 PSC.


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