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DNeX’s Ping Petroleum expands Malaysian presence with new production sharing contract with PETRONAS

Cyberjaya, 26 July 2024 – Dagang NeXchange Berhad’s (“DNeX”), through subsidiary Ping Petroleum Sdn Bhd (“PPSB”), has signed a new Production Sharing Contract (“PSC”) Small Field Asset (“SFA”) Cluster PSC with Petroliam Nasional Berhad (PETRONAS) (“PETRONAS”).

The 14-year PSC provides PPSB the right to develop and produce petroleum and gas resources from the three fields namely Bubu, Bunga Tasbih, and Enau, located about 250km from the east coast of Peninsular Malaysia. PPSB is the operator of this SFA Cluster PSC with a 90 per cent participating interest, while Duta Marine Sdn. Bhd. (“DMSB”) holds the remaining 10 per cent.

DNeX’s Executive Chairman Tan Sri Syed Zainal Abidin Syed Mohamed Tahir Jamalullail said the Group is pleased to be awarded another PSC contract from PETRONAS, through Malaysia Petroleum Management (“MPM”), adding to its existing assets namely Meranti, A and Abu clusters. The newly signed cluster lies between 4km to 8km from Ping’s existing Abu Cluster asset, providing significant synergy potential for an Area Development.

He said the achievement aligns with the Group’s objective to maximise revenue and diversify revenue streams, ensuring sustained growth and reinforcing its commitment to expanding its domestic portfolio. In addition to Malaysia, the Group also has oil and gas assets in the UK, including the producing Anasuria, and greenfield developments Avalon, Fyne, Pilot, Gleen and Hutton.

“We are thankful for the trust PETRONAS places in our ability to manage these assets safely and responsibly. This contract fortifies our partnership and enhances Ping Petroleum’s reputation in efficiently operating cost-effective producing assets,” said Tan Sri Syed Zainal Abidin Syed Mohamed Tahir Jamalullail.

Looking ahead, DNeX is dedicated to expanding its portfolio in both the UK and Malaysia. This aims to create a strong development pipeline of development opportunities that will foster continued growth and secure the Group’s future in the energy sector.