The governments of Malaysia and Brunei Darussalam have formalised a unitisation agreement (UA) to develop two oil fields in their maritime boundary.
The deal will see the joint development of the Gumusut-Kakap and Geronggong-Jagus East offshore oil fields by Malaysian national oil company Petronas and the National Unitisation Secretariat (NUS) of Brunei.
Petronas said that the joint development would enhance the value derived from the two oil fields for the countries.
Petronas president and group CEO Tengku Muhammad Taufik Tengku Kamadjaja Aziz said: “Having now formalised this landmark agreement, PETRONAS believes that both parties can look forward to continuing the strong momentum towards developing our nations’ energy sectors for the long-term growth and prosperity of both Brunei and Malaysia.”
The Gumusut-Kakap field lies in waters up to 1,200m deep. It includes the joint development of two ultra-deepwater discoveries, Gumusut and Kakap.
These fields are located within blocks J and K, approximately 120km offshore from Sabah, Malaysia.
The Gumusut-Kakap project involves 19 subsea wells, which are tied back to a floating production system (FPS).
Last month, Petronas and Abu Dhabi National Oil Company (Adnoc) signed a strategic framework agreement to explore opportunities across the full oil and gas value chain.
The deal allows the parties to jointly explore opportunities for collaboration in the exploration, development, and production of conventional and unconventional hydrocarbon resources in Abu Dhabi, UAE.
Additionally, the firms will jointly assess strategic opportunities for domestic and international collaboration across the downstream sector.