South Korea's Posco and Malaysia's Petronas Carigali have been awarded a Production Sharing Contract (PSC) for Block PM524, offshore Malaysia.
Posco is the operator with an 80 percent stake and Petronas Carigali, a subsidiary of Petronas holds the remaining 20 percent.
According to Petronas, Block PM524 is located in the prolific area of the Malay Basin, surrounded by several key producing fields including Tangga Barat that supply gas to the Peninsular Malaysia market.
Senior Vice President of Malaysia Petroleum Management Mohamed Firouz Asnan said: “We welcome Posco International to Malaysia’s upstream oil and gas industry, and as a new player in Malaysia, they bring their experiences of operating gas fields in other parts of
this region, including the technological development of Carbon Capture and Storage.
“This award further reinforces Malaysia’s attractiveness as a destination for companies seeking to grow their energy portfolio and thrive in the energy transition. Under our right asset, right player strategy, supported by a progressive fiscal regime, we hope to fully maximize the long-term value of the hydrocarbon resources in Malaysia, especially in Peninsular Malaysia where the demand is expected to increase,” he said.