Cyberjaya, 17 January 2023 – Dagang NeXchange Berhad’s (“DNeX”) subsidiary, Ping Petroleum Sdn Bhd (“PPSB”), today signed two Production Sharing Contracts (“PSCs”) with Petroliam Nasional Berhad (“PETRONAS”) for discovered oil and gas resources in Malaysia.
The first PSC is for the development and production of oil and gas resources in the Meranti cluster located 80 km offshore Kuala Terengganu. PPSB is the operator of the Meranti Cluster with 60 per cent participating interest, while Duta Marine Sdn. Bhd. (“DMSB”) holds the remaining 40 per cent participating interest.
The second PSC is for the development and production of oil and gas resources in the A Cluster located 290 km off the coast of Miri, Sarawak, offshore Malaysia. PPSB is the operator of the A Cluster with 70 per cent participating interest, while Petroleum Sarawak Exploration & Production Sdn. Bhd. (PSEP) holds the remaining 30 per cent participating interest.
PETRONAS awarded the contracts following its Malaysia Bid Round 2022 (“MBR 2022”).
The PSCs were officially signed earlier today by Managing Director of Ping Petroleum Limited Zainal Abidin Jalil and representing PETRONAS was Senior Vice President of Malaysia Petroleum Management, Mohamed Firouz Asnan.
Tan Sri Syed Zainal Abidin Syed Mohamed Tahir, Executive Chairman of DNeX, said the company is pleased to expand its portfolio onto the Malaysian shores with the maiden awards secured from PETRONAS.
“The inclusion of the Meranti Cluster and A Cluster in PPSB’s portfolio will re-establish the company’s position in our home territory, build on our proven track record for low-cost developments and operations in the UK and allow us to diversify our revenue stream and operations across multiple geographies. The total development cost for the two clusters will be determined after the development concepts have been finalised.”
He said the two clusters can contribute to the material increase of PPSB’s contingent resources and support further growth opportunities, while reinforcing its energy business.
“We thank PETRONAS for giving us the opportunity to benefit from the MBR 2022. We look forward to developing the local assets in Malaysia and working towards progressing the development of the oil and gas resources within the 2 PSCs.”
DNeX through its oil and gas upstream exploration and production unit, Ping Petroleum Limited currently has two assets namely the Anasuria and Avalon fields in the North Sea, United Kingdom (“UK”). The company focuses on shallow water production and development opportunities and is currently the joint operator of the Anasuria cluster (production) and sole operator of Avalon (development).
Tan Sri Syed Zainal Abidin Syed Mohamed Tahir said DNeX’s energy unit is in a unique position to capitalise on its proven track record of being amongst the lowest-cost upstream producers of late-life assets in the UK North Sea.
“This will ensure we can continually remain profitable in the event of oil price fluctuations. The demand side is also expected to remain broadly favourable despite a global economic slowdown, heightened recession risks in Europe and the United States, as well as lingering concerns over growth in China,” he said.