Production

MPM confirms PSCs for two gas field clusters offshore Malaysia

Feb. 28, 2024

Malaysia Petroleum Management (MPM) has awarded production sharing contracts (PSCs) for two discovered resource opportunity clusters offshore Peninsular Malaysia.

MPM continues to unlock new and interesting exploration areas with promising outcomes. Since 1974, there have been more than 2,000 wells drilled in Malaysia with active penetration at all stratigraphic levels, according to Petronas. (Data current as of September 2021)

Offshore staff

KUALA LUMPUR, Malaysia — Malaysia Petroleum Management (MPM) has awarded production sharing contracts (PSCs) for two discovered resource opportunity clusters offshore Peninsular Malaysia.

Petronas Carigali and JX Nippon Oil & Gas Exploration each have a 50% share in the BIGST Cluster. IPC Malaysia and IPC SEA Holding have 90% and 10%, respectively, in the Tembakau Cluster.

Petronas senior vice president Datuk Ir Bacho Pilong said, “While the development of resources remains crucial to ensure energy security, we are also taking deliberate efforts toward achieving our targets to manage emissions from operations. That is why we have incorporated CCS technology as part of the development of BIGST Cluster.”

This cluster of five undeveloped fields (Bujang, Inas, Guling, Sepat and Tujoh) discovered in the 1970s will be Peninsular Malaysia’s first high-CO₂ gas development. The production should also stimulate development of other similar fields, Petronas said.

The Tembakau Cluster comprises the undeveloped sweet gas fields Tembakau and Mengkuang, and it was awarded as a small field asset PSC, featuring a simplified fiscal model and governance process.

Petronas estimates recoverable gas resources at about 4 Tcf from BIGST and 260 Bcf from Tembakau Cluster.

02.28.2024