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KUALA LUMPUR, 12 December 2022 – PETRONAS Carigali Sdn Bhd (PCSB) entered into a Heads of Agreement (HOA) with JX Nippon Oil & Gas Exploration Corporation (JX Nippon) on 5 December 2022 to collaborate in developing a joint proposal to monetise the gas potential within the Bujang, Inas, Guling, Sepat and Tujoh (BIGST) fields, located offshore Kerteh, Terengganu.
The BIGST opportunity was offered as part of Malaysia Bid Round (MBR) 2020, where it had received several proposals from interested parties. PCSB and JX Nippon were shortlisted based on the quality of their submissions and unique value propositions.
The business value proposition by PCSB and JX Nippon will form the basis towards the negotiation of the PSC for this cluster.
Signing the HOA on behalf of PCSB was its Chief Executive Officer, Hasliza Othman while JX Nippon was represented by its Managing Director, Chief Representative in Malaysia, Yasuto Ariga. The signing ceremony was witnessed by PETRONAS Senior Vice President of Malaysia Petroleum Management (MPM), Mohamed Firouz Asnan and Senior General Manager, Resource Development and Management, MPM, Aidil Shabudin.
Aidil said, “The gas supply from BIGST fields is important for Peninsular Malaysia’s energy security given the significant potential that exists within the cluster. Carbon capture and storage (CCS) technology will be key solutions in monetising the fields since these fields contain high carbon dioxide (CO2) and will be the first CCS project in Peninsular Malaysia.”
The BIGST cluster will also be the catalyst that is expected to spur the development of other high contaminant fields in Peninsular Malaysia which was not possible prior to this, due to the lack of complete CO2 handling infrastructure.
“PCSB is expected to bring to the table its capability in developing CCS projects building on its recent experience on Kasawari CCS, that was sanctioned recently. PETRONAS would move closer towards its aspiration of achieving Net Zero Carbon Emissions (NZCE) by 2050 through these carbon reduction solutions,” he added.
PETRONAS, through MPM, manages petroleum arrangements in Malaysia and provides stewardship on upstream petroleum activities. For more information on investment opportunities in Malaysia, please visit https://www.petronas.com/mpm/.