Petronas expects US$5.2b investments in North Malay Basin gas project

  • Business
  • Thursday, 21 Jun 2012

KUALA LUMPUR: Petroliam Nasional Bhd (Petronas) expects about US$5.2bil would be invested in the North Malay Basin gas development project in Peninsular Malaysia over the next five years.

It said on Thursday the project would commercialise around 1.7 standard trillion cubic feet of gas reserves from the area.

The national oil corporation had on Thursday signed three main contracts with its unit Petronas Carigali Sdn Bhd and Hess Exploration and Production Malaysia B.V. that would pave the way for the project.

"The first contract is the amended production sharing contract (PSC) for offshore Block PM302 while the other two contracts are new exploration PSCs for Blocks PM325 and PM326B adjacent to Block PM302. All three PSCs are on a 50:50 equity split between Petronas Carigali and Hess Exploration and Production Malaysia," it said.

Petronas said the project would involve developing and commercialising nine stranded gas fields together with the development of a new gas gathering, processing and transportation hub. It would also include building 300km of pipelines.

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