KUALA LUMPUR: Dagang Nexchange Bhd’s (Dnex) subsidiary, Ping Petroleum Sdn Bhd (PPSB), has signed two production-sharing contracts (PSCs) with Petroliam Nasional Bhd (PETRONAS) for discovered oil and gas resources in Malaysia.
In a statement yesterday, Dnex said the first PSC is for the development and production of oil and gas resources in the Meranti cluster located 80km offshore Kuala Terengganu.
PPSB is the operator of the Meranti Cluster with 60% participating interest, while Duta Marine Sdn Bhd holds the remaining 40% participating interest.
The second PSC is for the development and production of oil and gas resources in the A Cluster located 290km off the coast of Miri, Sarawak, offshore Malaysia.
PPSB is the operator of the A Cluster with a 70% participating interest, while Petroleum Sarawak Exploration and Production Sdn Bhd holds the remaining 30% participating interest.
PETRONAS awarded the contracts following its Malaysia bid round 2022.
Dnex executive chairman Tan Sri Syed Zainal Abidin Syed Mohamed Tahir said the inclusion of the Meranti Cluster and A Cluster in PPSB’s portfolio would help to build the group’s proven track record for low-cost developments and operations in the United Kingdom.
He added that it would also allow the company to diversify its revenue stream and operations across multiple geographies.
“The total development cost for the two clusters will be determined after the development concepts have been finalised,” he said in the same statement.
According to Syed Zainal Abidin, Dnex’s energy unit is in a unique position to capitalise on its proven track record of being amongst the lowest-cost upstream producers of late-life assets in the UK North Sea.
“This will ensure we can continually remain profitable in the event of oil price fluctuations.
“The demand side is also expected to remain broadly favourable despite a global economic slowdown, heightened recession risks in Europe and the United States, as well as lingering concerns over growth in China,” he added.