Dagang NeXchange Berhad’s subsidiary, Ping Petroleum Sdn Bhd has signed two Production Sharing Contracts with Petronas for discovered oil and gas resources in Malaysia.
The first PSC is for the development and production of oil and gas resources in the Meranti cluster located 80 km offshore Kuala Terengganu. PPSB is the operator of the Meranti Cluster with 60 percent participating interest, while Duta Marine Sdn. Bhd. (“DMSB”) holds the remaining 40 percent participating interest.
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 is the operator of the A Cluster with 70 percent participating interest, while Petroleum Sarawak Exploration & Production Sdn. Bhd. (PSEP) holds the remaining 30 percent participating interest.
The national oil and gas giant awarded the contracts following its Malaysia Bid Round 2022 (“MBR 2022”).
“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 the two clusters can contribute to the material increase of PPSB’s contingent resources and support further growth opportunities, while reinforcing its energy business.
DNeX through its oil and gas upstream exploration and production unit, Ping Petroleum Limited currently has two assets namely the Anasuria and Avalon fields in the North Sea, United Kingdom (“UK”). The company focuses on shallow water production and development opportunities and is currently the joint operator of the Anasuria cluster (production) and sole operator of Avalon (development).
Tan Sri Syed Zainal Abidin Syed Mohamed Tahir said 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.
