Oil and gas company EnQuest has inked a deal with Malaysia’s Petronas to boost gas production from a field located in shallow water offshore Malaysia.
EnQuest revealed on Tuesday, 9 May 2023, that it had signed an agreement with Petronas to support Peninsular Malaysia’s gas demand by providing additional gas from the Seligi field through the existing PM8E production sharing contract (PSC) facilities until the end of 2025.
Commenting on the agreement, Amjad Bseisu , EnQuest Chief Executive Officer, remarked: “I am pleased with the progress on this agreement enabling Enquest to supply gas through existing infrastructure and look forward to continuing to work with our valued partner Petronas on unlocking further potential supplies.”
According to the company, this agreement is expected to increase its gas production by around 25 mmscf per day – 50 mmscfd gross – initially from associated gas, with the partnership assessing the drilling of additional gas-producing wells over time.
Furthermore, EnQuest claims that increasing gas production aligns with its strategy of “responsibly managing” existing energy assets, enhancing exposure to gas and international assets. It is also expected to contribute to a reduction in the firm’s carbon intensity.
Located approximately 280 kilometres off the east coast of Peninsular Malaysia in a water depth of about 70 metres, the Seligi field was discovered in May 1971 with the drilling of the Seligi 1 well. EnQuest took over the operator role at the Seligi field in 2014.