By inking a series of farm-out agreements, four oil and gas companies have joined forces to develop more than 6.5 trillion cubic feet (tcf) of natural gas offshore Sarawak. This enables PTTEP HK Offshore (PTTEP HKO), a wholly owned subsidiary of Thailand’s PTTEP, TotalEnergies EP Exploration, a subsidiary of France’s TotalEnergies, KUFPEC Malaysia, a subsidiary of Kuwait Foreign Petroleum Exploration Company (KUFPEC), and Petronas Carigali Sdn. Bhd. (PCSB), a subsidiary of Malaysia’s Petronas, to slash costs and optimize operational synergy.
PTTEP, TotalEnergies, KUFPEC, and Petronas’ farm-out agreements are related to joint investment in the SK410B Lang Lebah and B14 gas fields off the coast of Sarawak, offshore East Malaysia.
These deals are subject to customary conditions precedent, including regulatory approvals. Upon completion, the consortium for both fields will comprise TotalEnergies as the operator with a 30% interest, alongside PTTEP HKO and KUFPEC with 25% each, and PCSB with the remaining 20% stake.
The B14 gas field is located 14 kilometers from the Lang Lebah natural gas field under the Malaysia SK410B project. According to PTTEP, integrating development of the two fields will enhance project value by optimizing development costs and creating operational synergy.
Both fields are currently in the pre-development phase, with estimated natural gas resources of more than 6.5 trillion cubic feet. The company underlines that this brings together strategic partners to maximize the natural gas field development potential through cost optimization and operational synergies.
The collaboration is also perceived to strengthen the firm’s long-term growth, in line with PTTEP’s portfolio management strategy.