DAGANG NeXchange Bhd’s (DNeX) subsidiary, Ping Petroleum Sdn Bhd (PPSB), today signed two production sharing contracts (PSCs) with Petroliam Nasional Bhd (Petronas) for discovered oil and gas (O&G) resources in Malaysia.

The first PSC is for the development and production of O&G resources in the Meranti cluster located 80km offshore Kuala Terengganu, Terengganu. PPSB is the operator of the Meranti Cluster with 60% participating interest, while Duta Marine Sdn Bhd (DMSB) holds the remaining 40% participating interest.

The second PSC is for the development and production of O&G resources in the A Cluster located 290km off the coast of Miri, Sarawak, offshore Malaysia. PPSB is 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, it said in a statement yesterday.

The PSCs were officially signed earlier today by Ping Petroleum Ltd MD Zainal Abidin Jalil and representing Petronas was Malaysia Petroleum Management senior VP Mohamed Firouz Asnan.

DNeX executive chairman Tan Sri Syed Zainal Abidin Syed Mohamed Tahir 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 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 O&G upstream exploration and production unit, Ping Petroleum, currently has two assets namely the Anasuria and Avalon fields in the North Sea, 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).

Syed Zainal said DNeX’s energy unit is in a unique position to capitalise on its proven track record of being among the lowest-cost upstream producers of late-life assets in the UK North Sea.

“This will ensure we can continually remain profitable in the event of oil price fluctuations. The demand side is also expected to remain broadly favourable despite a global economic slowdown, heightened recession risks in Europe and the US, as well as lingering concerns over growth in China,” he said. — TMR / pic source DNeX’s Facebook