EnQuest Petroleum Production Malaysia, a subsidiary of London Stock Exchange-listed energy player EnQuest, and its partners in a production sharing contract (PSC) offshore Malaysia have signed a letter of agreement with Petronas enabling them to develop additional gas resources at a field within the PSC.
Enquest and its partners in the PM8E PSC – Petronas Carigali (PCSB) and E&P Malaysia Venture (EPMV) – have received authorization to annex the non-associated gas and condensate at Seligi field into the PM8E PSC, which comprises the Seligi and PM8 fields.
In line with the projected demand, around 70 million standard cubic feet (mmscf) per day of sales gas is expected to result from the development and commercialization of the previously non-associated gas resources in the area.
The partners stand to gain 155 billion standard cubic feet, or 27 million barrels of oil equivalent, of additional field gas resources under the deal that comes into effect on January 1, 2024. The field’s gas production was previously increased in May 2023 .
“I am pleased with the signing of this agreement, which enables EnQuest to develop and supply non-associated gas through our existing infrastructure,” said EnQuest Chief Executive Officer, Amjad Bseisu , noting that Malaysia is a “key area” for EnQuest’s growth strategy.
EnQuest intends to produce the additional gas by modifying its existing infrastructure to deliver new volumes into the Peninsular Malaysia gas system as it believes this to be a cost-efficient way to help the nation meet its increasing energy needs.
Located approximately 280 kilometers off the east coast of Peninsular Malaysia in a water depth of about 70 meters, the Seligi field was discovered in May 1971 with the drilling of the Seligi 1 well. The London Stock Exchange-listed player became the field’s operator and acquired a 50% share in the PSC covering it in 2014.
This follows the award of a small field asset production sharing contract (SFA PSC) for the DEWA complex cluster won by EnQuest, Seascape Energy, and Petroleum Sarawak Exploration & Production (PSEP) in late October . The PSC is said to comprise 12 gas discoveries in shallow water (40–50 meters) near existing infrastructure, situated approximately 50 kilometers off the coast of Sarawak, Malaysia.