KUALA LUMPUR - EnQuest PLC has secured an agreement to develop an additional 155 billion cubic feet (Bscf) of gas resources in Malaysia's Seligi field, where it holds a 50% equity share. The development, effective from January 1, 2025, is part of a collaboration with PETRONAS Carigali Sdn Bhd and E&P Malaysia Venture Sdn Bhd under the PM8 (Extension) Production Sharing Contract (PM8E PSC).
The agreement, signed with Malaysia's national oil company, Petroliam Nasional Berhad (PETRONAS), through Malaysia Petroleum Management ( MPM (BVMF:ESPA3)), includes the annexation of Seligi Field Non-Associated Gas and Condensate into the existing PM8E PSC. It also establishes the key terms for the PM8E Upstream Gas Sales Agreement concerning the supply of natural gas from the PM8E PSC.
This deal enables the PM8E PSC parties to develop and commercialize the non-associated gas resources within the contract area, with an anticipated supply of about 70 million standard cubic feet per day of sales gas, meeting expected demand.
EnQuest plans to utilize its existing infrastructure to produce the additional gas, which is seen as a cost-efficient solution to increase volumes in the Peninsular Malaysia gas system and support the country's growing energy needs. The move is also in line with EnQuest's strategy to reduce its carbon intensity by increasing the gas component of its production.
EnQuest's CEO, Amjad Bseisu, expressed satisfaction with the signing of the agreement, noting the importance of Malaysia in the company's growth strategy and the trust PETRONAS has placed in EnQuest. He highlighted the deal as a complement to the DEWA Complex Cluster SFA PSC signed earlier in October.
Ahmed Radzif, EnQuest Malaysia's General Manager and Country Head, also remarked on the significance of PETRONAS's confidence in their ability to develop and deliver on the Seligi Field Non-Associated Gas (NAG) project. He emphasized the company's commitment to fulfilling its gas sales obligations and its intent to continue expanding its operations in Malaysia.
The information provided is based on a press release statement by EnQuest PLC.
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