Wednesday 10 May 2023

EnQuest Petroleum Production Malaysia Ltd has announced that it has, on behalf of the PM8 (Extension) Production Sharing Contract (“PM8E PSC”) parties, signed a letter of agreement (“agreement”) with Petroliam Nasional Berhad (“PETRONAS”), to produce associated gas from Seligi field belonging to PETRONAS for sales through the existing PM8E PSC facilities. The agreement is effective from 1 May 2023 until 31 December 2025.

This agreement is expected to provide around 50 mmscf per day of associated gas (25 mmscf per day net to EnQuest), which is currently being reinjected into the reservoirs, for sale. PM8E PSC parties will be paid a fee by PETRONAS for the sales gas. Although gas produced from the field will remain available to PM8E PSC for its petroleum operations, these gas sales will support the growing gas demand in Peninsular Malaysia without any adverse impact to its oil production operations.

The delivery and sales of the gas align with EnQuest’s strategy of responsibly managing existing energy assets, enhancing exposure to gas and international assets, and will contribute to a reduction in EnQuest’s carbon intensity.

Commenting on the agreement, EnQuest Chief Executive Officer, Amjad Bseisu said:

“I am pleased with the progress on this agreement enabling EnQuest to supply gas through existing infrastructure. We look forward to continuing to work with Malaysia Petroleum Management (MPM), PETRONAS, the custodian of Malaysia’s hydrocarbon resources, on further potential supplies.”.