Vestigo Petroleum has secured the South East Collins Cluster production sharing contract (PSC) from Petronas to monetise an inventory of small discovered resource opportunities available in Malaysian waters.
Situated in water depths of 42m to 45m and 70km north-east of Labuan Island, the South East Collins Cluster features two fields dubbed South East Collins and Lokan.
Both the fields, which were discovered in the 1980s, have combined estimated recoverable reserves of ten million barrels of oil (bbl).
Petronas expects the award under the newly introduced small field asset PSC terms to accelerate the development and production of more small fields in the future.
Petronas senior vice-president of Malaysia Petroleum Management Mohamed Firouz said: “We welcome operators who are specialised in the development of small fields to extend their capabilities here in Malaysia.
“For many of these fields to work, we need operators with the right mindset and business model to take advantage of the customised fiscal and non-fiscal terms offered by PETRONAS. Under the current volatile oil prices, these operators must also employ innovative solutions to ensure the lowest total lifecycle cost.”
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Petronas said Vestigo’s selection was based on its track record as a low-cost operator in the development and operation of small fields.
Vestigo, a subsidiary of Petrnoas Carigali, operates the Irong cluster PSC, SK315 PSC, PM335 PSC, and the Tembikai Chenang small field risk-sharing contract. The company also holds non-operating interests in PM9 PSC and SK407 PSC.
Earlier this year, Petronas launched the Malaysia Bid Round 2021 through a virtual event offering 13 exploration blocks.
The MBR 2021 will open up more investment opportunities for investors to explore and monetise hydrocarbon resource potentials in Malaysia.