KUALA LUMPUR: Petroliam Nasional Bhd's (PETRONAS) wholly owned subsidiary, PETRONAS Carigali Sdn Bhd, has entered into several agreements involving selected producing upstream assets in Peninsular Malaysia and Sarawak.
The move reinforces its commitment to creating long-term value for the nation through a partnership-led approach.
In a statement today, PETRONAS said the agreements form part of its broader portfolio optimisation efforts aimed at developing upstream assets responsibly and sustainably, in support of Malaysia's long-term energy security and industry development.
The national oil company said the partnerships are expected to leverage the parties' integrated technical capabilities and experience in managing brownfield and late-life assets, supporting the continued operation and redevelopment of the producing assets.
PETRONAS chief operating officer and executive vice-president Mohd Jukris Abdul Wahab said the partnerships reflect the company's responsibility to steward the nation's resources prudently while ensuring continued value creation for the country and its stakeholders.
"As these assets mature, it is important that they continue to be supported by the right partnerships to sustain value creation responsibly and over the long term.
"This includes creating opportunities for state participation, while bringing in partners with complementary capabilities and relevant operating experience,” he said.
Mohd Jukris, who is also chief executive officer of Upstream, said the approach would help attract continued investment, strengthen industry capabilities and support Malaysia's energy security, while ensuring the assets continue to generate value for the nation.
Under the agreements, EnQuest Petroleum Production Malaysia Ltd will assume operatorship and participating interests (PI) in the Balingian PSC, SK8 PSC and D35 PSC, while participating as a non-operating partner in the PM6/12 PSC.
A key component of the arrangements is the participation of Terengganu's TI Exploration and Production Sdn Bhd (TI EP), which will hold a non-operated PI in the PM6/12 PSC.
TI EP is a joint venture between TI Petroleum Sdn Bhd, a wholly owned subsidiary of Terengganu Inc -- the state's strategic investment arm -- and Ping Petroleum Ltd, an independent upstream company specialising in late-life oil and gas assets, particularly brownfield redevelopment projects in the United Kingdom's North Sea.
PETRONAS said the participation reflects its continued efforts to facilitate greater state involvement in Malaysia's upstream industry, enabling state-linked entities to build capabilities and participate meaningfully in the development of the nation's petroleum resources.
The company said the strategic partnerships bring together complementary strengths to support the efficient and sustainable operation of the upstream assets, while facilitating operational learning, technical knowledge transfer and capability enhancement within Malaysia's upstream sector.
By combining PETRONAS' extensive understanding of the domestic resource base with the specialised expertise of its partners, the arrangements are expected to support sustained production, maximise resource recovery and strengthen the resilience of Malaysia's upstream ecosystem, it added. - Bernama
