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, the group said the first PSC is for the development and production of oil and gas resources in the Meranti cluster located 80km offshore Kuala Terengganu.
It said PPSB will be the operator of the Meranti Cluster with 60% participating interest, while Duta Marine Sdn. Bhd. holds the remaining 40%participating interest.
Meanwhile, the second PSC is for the development and production of oil and gas resources in the A Cluster located 290 km off the coast of Miri, Sarawak, offshore Malaysia.
PPSB will be the operator of the A Cluster with 70% participating interest, while Petroleum Sarawak Exploration & Production Sdn. Bhd. (PSEP) holds the remaining 30% participating interest.
PETRONAS awarded the contracts following its Malaysia Bid Round 2022.
Tan Sri Syed Zainal Abidin Syed Mohamed Tahir, Executive Chairman of DNeX, said the company is pleased to expand its portfolio onto the Malaysian shores with the maiden awards secured from PETRONAS.
“The inclusion of the Meranti Cluster and A Cluster in PPSB’s portfolio will re-establish the company’s position in our home territory, build on our proven track record for low-cost developments and operations in the UK and allow us to diversify our 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.
He added that the two clusters can contribute to the material increase of PPSB's contingent resources and support further growth opportunities, while reinforcing its energy business.
