PETALING JAYA: PETRONAS Carigali Sdn Bhd (PCSB) has entered into a heads of agreement with JX Nippon Oil & Gas Exploration Corp (JX Nippon) to jointly monetise the gas potential within the Bujang, Inas, Guling, Sepat and Tujoh (BIGST) fields, located offshore Kerteh in Terengganu.
In a statement yesterday, PCSB said the BIGST opportunity was offered as part of Malaysia Bid Round or 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 production-sharing contract for this cluster.
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.
At the end of last month, PCSB reached the final investment decision for the development of the Kasawari CO2 Sequestration (CCS) project offshore Sarawak.
The CCS project, located in Block SK316 about 200km off Bintulu, is expected to reduce carbon dioxide volume emitted via flaring by 3.3 MtCO2e annually, making it one of the largest offshore CCS projects in the world.
News reports have stated PETRONAS’ upstream arm was planning to develop the Kelidang ultra-deepwater field ofshore Brunei as well.
