EnQuest Petroleum Production Malaysia has been awarded an agreement to develop approximately 155 Bscf (c. 27 million barrels of oil equivalent) of additional Seligi field gas resources, with a 50% equity share.
EnQuest, in partnership with PETRONAS Carigali ('PCSB') and E&P Malaysia Venture ('EPMV') (together, the PM8 (Extension) Production Sharing Contract ('PM8E PSC') parties) has signed a letter of agreement with PETRONAS through Malaysia Petroleum Management ('MPM'), for the annexation of Seligi Field Non-Associated Gas and Condensate to be part of PM8E PSC (Addendum No. 1), effective from 1 January 2025. In addition, the parties have also agreed on the key terms for the PM8E Upstream Gas Sales Agreement relating to the supply of natural gas produced from PM8E PSC.
The agreement enables the PM8E PSC parties to develop and commercialize the non-associated gas resources in the PM8E PSC contract area and, in line with expected demand, supply around 70 mmscf per day of sales gas.
EnQuest will produce the additional Seligi Field non-associated gas by modifying its existing infrastructure, which provides a cost-efficient way to deliver new volumes into the Peninsular Malaysia gas system and will help the nation meet its increasing energy needs. These volumes also increase the gas component of EnQuest's production, which aligns to the Group's strategic aim to reduce its overall carbon intensity.
Commenting on the agreement, EnQuest Chief Executive Officer, Amjad Bseisu said:
'I am pleased with the signing of this agreement, which enables EnQuest to develop and supply non-associated gas through our existing infrastructure. We look forward to collaborating with our partners in delivering on our commitments and we thank PETRONAS for their continued trust and confidence. 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.'
EnQuest Malaysia General Manager and Country Head, Ahmed Radzif said: 'The trust PETRONAS has shown in our ability to develop and deliver Seligi Field NAG is a responsibility we are delighted to take on and recognises our 10 years of operating PM8E PSC in a safe and efficient manner. We look forward to delivering our gas sales commitments and remain focused on continuing to grow the business here in Malaysia.'
Source: EnQuest
