Oil and gas companies Rex International and Duta Marine have been awarded rights to operate the Rhu-Ara and Diwangsa clusters offshore Malaysia.
Petronas signed the two Small Field Asset (SFA) Production Sharing Contracts with the two companies in what is Rex’s maiden entry into Malaysia’s upstream industry, in partnership with local company Duta Marine.
Rex holds a 95 percent stake with Duta Marine holding the remaining five percent in both PSCs.
"Rex brings to the table significant operating experience and expertise in developing and producing small oil fields in the Middle East as well as participation in joint ventures in the North Sea," Petronas said.
"The fields were offered during the Malaysia Bid Round 2020 (MBR 2020) based on the SFA fiscal terms introduced in the same year that intensifies Petronas’ commitment to monetizing small discovered resource opportunities in Malaysian waters," the Malaysian oil giant said.
The Rhu-Ara Cluster, consisting of Rhu and Ara fields, lies within the Penyu Basin 150km off the coast of oil center Kerteh, Terengganu. The Diwangsa Cluster, which lies on the northwestern side of the Malay Basin, comprises Diwangsa, Bubu, Korbu, and Lerek fields.
These previously discovered fields have total estimated recoverables of 12.7 MMstb for the Rhu-Ara Cluster and 10.7 MMstb for the Diwangsa Cluster. Both clusters are now primed for development under the SFA PSC terms which incorporates a simplified fiscal model and governance process, Petronas said.
Petronas' Senior Vice President of Malaysia Petroleum Management (MPM), Mohamed Firouz Asnan said: "We believe that Rex’s proven capability in developing small fields abroad could be deployed in the Rhu Ara fields to unlock the potential in the Penyu Basin followed by the development of Diwangsa Cluster."