Petronas Brings In EnQuest, TI EP as Partners on Malaysian Upstream Assets
Petronas has signed agreements to bring in new partners for producing upstream assets in Peninsular Malaysia and Sarawak state.
EnQuest Petroleum Production Malaysia will assume operatorship and participating interests in the Balingian, SK8 and D35 production sharing contracts, and take a non-operating stake in the PM6/12 PSC. Terengganu's TI Exploration & Production will hold a non-operated participating interest in the PM6/12 PSC.
The farm-downs follow an earlier tie-up between Petronas and Eni, which completed a 50:50 joint venture combining their gas-focused assets in Malaysia and Indonesia. The venture, Searah, holds 19 gas-producing and development assets, with 14 in Indonesia and 5 in Malaysia. According to the partners, Searah starts from an initial production base above 300,000 boe/d and aims to exceed 500,000 boe/d of sustainable production within three years.
Searah has secured a USD 6 billion revolving credit facility and has a pipeline of expected investment of over USD 20 billion over the next five years. The partners said these investments will support development of more than 3 billion barrels of oil equivalent of discovered resources and unlock additional exploration potential.
The Malaysian farm-downs sit alongside the Searah structure, broadening the operator base on mature PSCs while Petronas concentrates capital on the larger gas joint venture spanning both countries.
Source: rigzone.com (opens in a new tab)1 sourcePermalink