Malaysia's state-owned energy giant, Petronas, has entered into production sharing contracts (PSCs) with various partners for three discovered resource opportunities (DRO) clusters and one exploration block as part of the Malaysia Bid Round (MBR) 2024. These PSCs, involving oil and gas resources offshore Peninsular Malaysia and off the coast of Sabah, encompass nine fields and one exploration block. Awarded through Petronas' subsidiary, Malaysia Petroleum Management (MPM), the contracts were a result of the bidding round launched earlier this year.

The awarded resources are located within proven hydrocarbon basins and are close to existing infrastructure, offering promising monetization opportunities. This latest round follows several PSCs awarded under the Malaysia Bid Round Plus (MBR+), a complementary initiative to the annual MBR that seeks to attract global investments in Malaysia’s upstream sector.

Highlighting the year’s achievements, MPM Senior Vice President Bacho Pilong remarked, “The year 2024 marks another successful year with the award of 18 PSCs across exploration, DRO, and Late Life Asset. This demonstrates investors' confidence in Petronas' innovative asset offerings with high monetization potential, further solidifying Malaysia as a preferred destination for upstream investments.”

Among the awarded contracts, the RAJA cluster, consisting of the Rhu, Ara, and Janglau fields, was granted to Dialog Resources. Located offshore Peninsular Malaysia, this Small Field Asset (SFA) PSC aims to harness the potential of smaller reserves. EPOMS secured the contract for the second SFA PSC, focusing on the Erb South field.

The Ubah cluster, comprising five fields—Ubah, Rempah, Bagang, Batai, and Biris—was awarded to ConocoPhillips Malaysia New Ventures Limited, Sabah Shell Petroleum Company Limited, and Petronas Carigali under a deepwater revenue-over-cost PSC. Situated off Sabah’s coast, this cluster offers significant opportunities for integration and efficiency, particularly with the nearby Kebabangan field operated by the same contractors. Pilong emphasized that such integration could lead to synergies and operational advantages.

Additionally, exploration Block PM515 was awarded to Petronas Carigali Sdn Bhd (PCSB) and E&P Malaysia Venture under enhanced profitability terms PSC. Pilong noted the block's potential for substantial discoveries, while the DRO clusters are well-positioned for accelerated development due to their sizeable resources and proximity to established facilities.

Looking ahead, Petronas is preparing for MBR 2025, scheduled for the first quarter of next year, as part of its effort to maintain Malaysia's appeal for upstream investments. This move aligns with its broader strategy to strengthen its global partnerships and expand resource development.

In a related development, Petronas recently signed a 15-year agreement with ADNOC for 1 million tonnes per annum (mtpa) of liquefied natural gas (LNG) from ADNOC's Ruwais LNG plant under construction in Al Ruwais Industrial City, Abu Dhabi. This agreement further underscores Petronas' commitment to diversifying its energy portfolio and securing long-term energy supply partnerships.