PETRONAS is a progressive regulator and has consistently established win-win partnerships while providing an attractive and conducive business ecosystem for investors in Malaysia’s oil and gas industry.
Small Field Assets (SFA) PSC term is an improvement that encompasses new approach to the fiscal model as well as simplification of the supporting processes.
The simplified and straightforward SFA fiscal model will facilitate effective monetisation of small fields. At the same time it provides flexibility for the operator to optimise operational costs and maximise the profit margin.
Managing risks are a key factor in investment decisions. Hence, the SFA fiscal model promotes a staggered commitment approach in ensuring sufficient time to evaluate technical and commercial risks prior to development commitment.
The overall PSC terms are also streamlined to be simple and straightforward.
| Contract Duration | 10 to 15 years (depending on the asset including abandonment work) | |
| Scope | Development, Production, Abandonment ("DPA") of all fields within the contract duration | |
| Development Period | Pre-Development Phase of up to 2 years from effective date |
Development Phase of up to 2 years |
| Production Period | Up to 10 years (depending on the asset) |
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| Minimum Work Commitment | Pre-Development Phase e.g. Resource assessment and/or maturation study or drilling of 1 appraisal |
Development Phase e.g. Meet First Commercial Production (FCP) as per approved FDAP |
| Reporting Submission |
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| Cess Treatment | Through Unit of Production ("UOP") basis with a factor of up to 1.5 | |
Notes:
2. Resource Assessment submissions must adhere to the minimum expectations stipulated and guidelines provided by PETRONAS
3. Abandonment may take place at any time, and may affect the contract duration
4. An Annual Work Plan is required if any drilling activity is to be carried out during the Pre-Development Phase
The non-fiscal aspects of the SFA PSC have also been redesigned to provide greater flexibility and empowerment to the operator.
Our aim is to ensure everyone goes home safely. We work closely with our operators to ensure compliance with all prescribed standards in Health, Safety, Security and Environment (HSSE), asset integrity as well as in managing decommissioning.
The information in this section serves as a reference for Small Field Asset (SFA) PSC terms for applicable Discovered Resource Opportunity (DRO) clusters.
The use and confidentiality of this document shall be governed by the terms of the respective Confidentiality Agreement (CA) executed between PETRONAS and a Potential Bidder.
Potential Bidders acknowledge and accept that the materials and information contained in this presentation are not final and that any final terms remain subject to PETRONAS' approval
Disclaimer: Content provided herewith highlights key principles intended for Small Field Asset (“SFA”) PSC. It is meant to provide general guidance, specific of which will be covered in the draft PSC. The information stated herein is for information purposes only. PETRONAS makes no representations or warranties, express or implied, as to the accuracy or completeness of the information disclosed hereunder and PETRONAS, its Affiliates, their officers, directors and employees shall have no liability whatsoever with respect to the use of or reliance upon any and/or all of the information disclosed.
