PETRONAS Carigali, a wholly-owned subsidiary of PETRONAS, has reached the Final Investment Decision (FID) for the development of its Kasawari CO2 Sequestration (CCS) project offshore Sarawak.
The FID was approved on 20 October 2022, followed by the award of the Engineering, Procurement, Construction, Installation and Commissioning (EPCIC) contract for the project to Malaysia Marine and Heavy Engineering Sdn Bhd (MMHE) on 3 November.
The CCS project, located in Block SK316 about 200 kms off Bintulu, is expected to reduce carbon dioxide volume emitted via flaring by 3.3 MtCO2e annually, making it one of the largest offshore CCS projects in the world.
Petronas Carigali's Chief Executive Officer, Hasliza Othman said, 'The FID marks a crucial stage in the progress of CCS solutions. This project is expected to become the catalyst in achieving end-to-end CCS capability development within PETRONAS and the first step in unlocking Malaysia’s potential as a regional CCS solutions hub.'
The project aspires to pave the way forward for future decarbonisation plans for PETRONAS and Malaysia, as well as to support PETRONAS’ progress towards achieving its Net Zero Carbon Emission (NZCE) by 2050 targets.