Industry heavyweights and domestic companies among Malaysia acreage winners

Petronas has awarded several production sharing contracts for acreage offered under the Malaysia Bid Round (MBR) 2024 launched earlier this year.

The acreage, awarded on Thursday by Petronss through Malaysia Petroleum Management (MPM), included PSCs for three Discovered Resource Opportunities (DRO) Clusters and one exploration block.

The PSCs cover nine fields and one exploration block, featuring oil and gas discoveries located offshore Peninsular Malaysia and off the coast of Sabah.

These resources, situated within proven hydrocarbon basins, offer significant development advantages due to their proximity to existing infrastructure, enabling development synergies and swift monetisation, ensuring efficient and cost-effective resource extraction, noted Petronas.

Under the Small Field Asset PSC, the RAJA Cluster, located offshore Peninsular Malaysia — and which comprises Rhu, Ara and Janglau fields — was awarded to Dialog Resources, while the Erb South field was awarded to EPOMS.

Dialog, which will assume a 100% operated interest in the RAJA Cluster SFA PSC, said the 14-year contract comes with a two-year pre-development phase that allows it to finalise the field development plan and move into a subsequent two-year development phase, with first commercial production expected by the end of the development phase.

The production phase will continue for the remaining 10 years or up to the expiry of the contract, whichever is earlier.

Dialog noted the RAJA Cluster SFA PSC includes a minimum work commitment during the pre-development phase, which will encompass a technical feasibility study, 3D seismic data reprocessing and specialised studies.

A field development and abandonment plan will be developed to determine the feasibility and commerciality of the asset and submitted to industry regulator Petronas.

The Ubah Cluster, located off the coast of Sabah, consisting of five fields – Ubah, Rempah, Bagang, Batai and Biris – was awarded to ConocoPhillips, Shell and Malaysia’s national upstream company Petronas Carigali under the Deepwater Revenue-over-Cost PSC.

Meanwhile, exploration Block PM515 was awarded under the Enhanced Profitability Terms PSC to Petronas Carigali and E&P Malaysia Venture.

MPM senior vice president, Bacho Pilong said: “We are pleased to see our petroleum arrangement contractors growing their portfolios in Malaysia. With their strong track records and proven capabilities, they continue to contribute significantly to the growth of Malaysia's petroleum sector.

“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.”

He said that the Ubah Cluster could greatly benefit from integration with the Kebabangan field, especially considering that both are operated by the same companies.

“This integration can lead to various synergies and advantages for the operations of both fields.”

Bacho added: “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.”

Petronas confirmed it is gearing up for MBR 2025, which is scheduled for the first quarter of 2025.

The upcoming bid round offers significant opportunity for investors to explore Malaysia's upstream oil and gas potential. To enhance investors’ experience, Petronas has established myPROdata, a smart platform that it said offers exclusive access to comprehensive data and insights, empowering investors to make more informed decisions.

“With these enhancements, Petronas is poised to deliver meaningful value and further reinforce Malaysia's position as an attractive destination for upstream investments,” said the national energy giant.