EnQuest Petroleum Manufacturing Malaysia, a subsidiary of London Inventory Alternate-listed vitality participant EnQuest, and its companions in a manufacturing sharing contract (PSC) offshore Malaysia have signed a letter of settlement with Petronas enabling them to develop further fuel assets at a discipline inside the PSC.

Enquest and its companions within the PM8E PSC – Petronas Carigali (PCSB) and E&P Malaysia Enterprise (EPMV) – have obtained authorization to annex the non-associated fuel and condensate at Seligi discipline into the PM8E PSC, which contains the Seligi and PM8 fields. 

In step with the projected demand, round 70 million commonplace cubic ft (mmscf) per day of gross sales fuel is anticipated to end result from the event and commercialization of the beforehand non-associated fuel assets within the space.

The companions stand to achieve 155 billion commonplace cubic ft, or 27 million barrels of oil equal, of further discipline fuel assets beneath the deal that comes into impact on January 1, 2024. The sector’s fuel manufacturing was beforehand elevated in Might 2023. 

“I’m happy with the signing of this settlement, which permits EnQuest to develop and provide non-associated fuel via our present infrastructure,” mentioned EnQuest Chief Government Officer, Amjad Bseisu, noting that Malaysia is a “key space” for EnQuest’s development technique.

EnQuest intends to supply the extra fuel by modifying its present infrastructure to ship new volumes into the Peninsular Malaysia fuel system because it believes this to be a cost-efficient manner to assist the nation meet its growing vitality wants. 

Situated roughly 280 kilometers off the east coast of Peninsular Malaysia in a water depth of about 70 meters, the Seligi discipline was found in Might 1971 with the drilling of the Seligi 1 properly. The London Inventory Alternate-listed participant grew to become the sphere’s operator and purchased a 50% share within the PSC protecting it in 2014.

This follows the award of a small discipline asset manufacturing sharing contract (SFA PSC) for the DEWA advanced cluster received by EnQuest, Seascape Vitality, and Petroleum Sarawak Exploration & Manufacturing (PSEP) in late October. The PSC is claimed to comprise 12 fuel discoveries in shallow water (40–50 meters) close to present infrastructure, located roughly 50 kilometers off the coast of Sarawak, Malaysia.