Malaysian national oil company, Petroliam Nasional Berhad (PETRONAS) has awarded two new small field asset (SFA) production-sharing contracts (PSCs) to Singapore-listed Rex International for the Rhu-Ara and Diwangsa clusters offshore Peninsular Malaysia.
The new award of these PSC marks Rex’s maiden entry into Malaysia’s upstream industry, in partnership with it’s Malaysian partner company Duta Marine (DMSB). The participating interests of Rex and DMSB are 95% and 5% respectively with Rex being the operator of the PSCs.
The Rhu-Ara cluster contains two discovered oil fields and the Diwangsa Cluster contains four discovered oil fields. The fields were offered during the Malaysia Bid Round 2020 (MBR 2020) based on the small field asset (SFA) fiscal terms introduced in the same year.
The Rhu-Ara Cluster, consisting of Rhu and Ara fields, lies within the Penyu Basin 150km off the coast of oil centre Kerteh, Terengganu. The Diwangsa Cluster, which lies in the northwestern side of the Malay Basin, comprises Diwangsa, Bubu, Korbu and Lerek fields. These previously discovered fields have total estimated recoverables of 12.7 MMstb for the Rhu-Ara Cluster and 10.7 MMstb for the Diwangsa Cluster. Both clusters are now primed for development under the SFA PSC terms which incorporates a simplified fiscal model and governance process.
PETRONAS’s commitment to accelerate the monetisation of small discovered resources will be powered through Rex International significant operating experience in developing and producing small oil fields while leveraging its experience in Oman and North Sea.
“We welcome new players who can deliver innovative solutions to ensure the lowest total life cycle cost in developing the discovered resources opportunities available in Malaysia waters. We are pleased to see that the SFA terms have become more attractive to the investors, thus validating the efforts taken to turn Malaysia into a growth hub for the investors,”Mohamad Firouz, Senior Vice President, Malaysia Petroleum Management
PETRONAS also calls for potential investors seeking to invest in Malaysia’s E&P sector can participate in the ongoing Malaysian Bidding Round 2021 “Grow Your Energy Portfolio with Us”. Visit https://www.petronas.com/mpm/ for more information on investment opportunities.