There has been a number of efforts to expand production in Malaysia’s offshore oil and gas fields, with a number of key industry players increasing their stake in the region.
TotalEnergies, for instance, has finalised the acquisition of interests of OMV and Sapura Upstream Assets in SapuraMOV Upstream, an independent gas producer in Malaysia. SapuraOMV’s main assets are its 40% operated interest in block SK408 and 30% operated interest in block SK310, located offshore Sarawak. In 2024, SapuraOMV’s operated production (100%), supported by the start-up of the Jerun gas field, is expected to reach approximately 590 Mcf/d of natural gas, feeding the Bintulu LNG plant operated by Petronas, as well as 10 kb/d of condensates.
Elsewhere, EnQuest Petroleum Production Malaysia announced in December an agreement to develop approximately 155 Bscf (c.27mn barrels of oil equivalent) of additional Seligi field gas resources along with a 50% equity share.
In partnership with PETRONAS Carilgali Sdn Bhd and E&P Malaysia Venture Sdn Bhd, the agreement enables the parties to develop and commercialise the non-associated gas resources in the PM8E PSC contract area and, in line with expected demand, supply around 70mmscf per day of sales of gas. EnQuest will produce additional Seligi Field non-associated gas by modifying its existing infrastructure, providing a cost-efficient way to deliver new volumes into the Peninsula Malaysia gas system.
“Malaysia is a key area for EnQuest’s growth strategy, and this agreement complements the signing of the DEWA Complex Cluster SFA PSC in October this year,” remarked EnQuest CEO, Amjad Bseisu.
December was also marked by PETRONAS awarding production sharing contracts for three discovered resource opportunities clusters and one exploration block offered under the Malaysia Bid Round (MBR) 2024 which was launched earlier this year. The resources are located next to existing infrastructure, enabling synergistic development and swift monetisation that, PETRONAS said, will allow for efficient and cost-effective resource extraction.
“We are pleased to see our petroleum arrangement contractors growing their portfolios in Malaysia,” said Senior Vice President of MPM, Datuk Ir. Bacho Pilong. “With their strong track records and proven capabilities, they continue to contribute significantly to the growth of Malaysia's petroleum sector… The year 2024 marks another successful year with the award of 18 PSCs across exploration, DRO and Late Life Asset. This is a testament of investors' confidence in PETRONAS' innovative asset offerings with high monetisation potential, solidifying Malaysia’s position as a preferred destination for upstream investments.”
While Malaysia is already a strong point in the APAC region for well intervention services beyond drilling, the expansion of production in the country suggests that even more opportunities will be forthcoming for such service providers.
