KUALA LUMPUR, 28 February 2024 – PETRONAS, through Malaysia Petroleum Management (MPM) today signed Production Sharing Contracts (PSC) for two Discovered Resource Opportunities (DRO) clusters, situated off the coast of Peninsular Malaysia.
The BIGST Cluster was awarded to PETRONAS Carigali Sdn Bhd, and JX Nippon Oil & Gas Exploration (BIGST) Sdn Bhd, with 50 per cent participating interest each. Meanwhile, Tembakau Cluster was awarded to IPC Malaysia B.V and IPC SEA Holding B.V, with 90 per cent and 10 per cent participating interest, respectively.
PETRONAS Senior Vice President of MPM, Datuk Ir Bacho Pilong said, “The signing of the BIGST and Tembakau DRO clusters PSCs further reinforce Malaysia’s position as an attractive destination for industry players seeking to grow their energy portfolio and thrive in the energy transition with Malaysia’s differentiated barrels. These awards, in addition to the signing of seven new PSCs earlier this year were the result of MPM’s ongoing efforts in promoting Malaysia Upstream, and a testament to investors’ confidence in Malaysia’s E&P industry.
SVP of MPM, PETRONAS, Datuk Ir. Bacho Pilong together with signatories and representatives from PCSB, JX Nippon and IPC at the BIGST and Tembakau Clusters PSCs signing
He added “While the development of resources remains crucial to ensure energy security, we are also taking deliberate efforts towards achieving our targets to manage emissions from operations. That is why we have incorporated CCS technology as part of the development of BIGST Cluster”.
BIGST Cluster, which was discovered in the 1970s is made up of five undeveloped high CO2 gas fields (Bujang, Inas, Guling, Sepat and Tujoh), and was awarded with innovative fiscal terms aimed at attracting complex resource monetisation. It is now primed for development and is the first high CO2 gas development in Peninsular Malaysia, incorporating Carbon Capture and Storage (CCS) technology as part of its value offerings. The gas supply from the fields is important for the region’s energy security as it will spur the development of other similar fields.
Tembakau Cluster is a new addition to IPCM’s existing interests in Malaysia. It comprises two undeveloped sweet gas fields (Tembakau and Mengkuang), awarded as Small Field Asset (SFA) PSC, which incorporates a simplified fiscal model and governance process.
The monetisation of these clusters with an estimated recovery of approximately 4 trillion standard cubic feet (Tscf) from BIGST and 260 billion standard cubic feet (Bscf) from Tembakau Cluster will significantly boost gas supply to the Peninsular Malaysia hub.
Apart from issuing license and managing petroleum arrangements in Malaysia, MPM is the country’s oil and gas industry shaper and investment enabler that steers the development of petroleum resources in Malaysia.
For more information on oil and gas investment opportunities in Malaysia, including the MBR2024 offerings, please visit https://www.petronas.com/mpm/.
