Photo: Illustration; Source: Petronas

Petronas welcomes South Korea’s Posco as a new player in Malaysia

Malaysia’s state-owned Petronas has awarded a Production Sharing Contract (PSC) for Block PM524, located offshore Malaysia, to Posco International and Petronas Carigali.

South Korea’s Posco International is the operator with 80 per cent participating interest while Petronas Carigali, Petronas’ wholly-owned subsidiary, holds the remaining 20 per cent.

Block PM524 off Malaysia - Petronas
Block PM524 off Malaysia; Source: Petronas

The PSC was signed in a virtual ceremony held on Monday. Signing on behalf of Petronas was Senior Vice President of Malaysia Petroleum Management, Mohamed Firouz Asnan, while the Petroleum Arrangement contractors were represented by Posco International Chief Executive Officer, Si-Bo Joo, and Petronas Vice President of Malaysia Assets, Upstream and PCSB Chief Executive Officer, Hasliza Othman. Petronas Executive Vice President & Chief Executive Officer of Upstream, Adif Zulkifli, was also present.

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.

Mohamed Firouz 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 energy transition. Under our right asset, right player strategy, supported by a progressive fiscal regime, we hope to fully maximise the long-term value of the hydrocarbon resources in Malaysia, especially in Peninsular Malaysia where the demand is expected to increase,” he added.