: (6082) 552 901PETROS ANNOUNCES THREE MILESTONE AGREEMENTS AT 5TH ANNIVERSARY EVENT
Date: 20 October 2022
KUCHING, 20 OCTOBER 2022 - Petroleum Sarawak Berhad or PETROS announced the following 3 key milestone Agreements during an event commemorating its 5th anniversary as the State's own integrated player of the oil and natural gas value chain.
- Farm-in of Block SK407 Production Sharing Contract (PSC)
- Heads of Agreement for Sale and Purchase of Natural Gas for Miri
- Carbon Capture Storage (CCS) Joint Collaboration Agreement
PETROS Chairman, Tan Sri Datuk Amar (Dr) Hamid bin Bugo said in his speech at the event that the strategic collaborations signify the corporation’s further growth in the oil and gas value chain and significant progress into its Sarawak Gas Roadmap (SGR) strategy. SGR is a key pillar in realising the State’s 2030 Vision of becoming a high income and advanced state; through the prioritisation of 1,200 mmscf/day of Sarawak’s natural gas to spur the domestic economy.
Also in attendance were Tan Sri Dato’ Seri Mohd Bakke Salleh, Chairman of Petroliam National Berhad (PETRONAS) and Datuk Adif Zulkifli, PETRONAS Executive Vice President and CEO Upstream.
Farm-in of Block SK407
Petroleum Sarawak Exploration & Production Sdn Bhd (PSEP), a wholly owned subsidiary of PETROS, has agreed with PETRONAS Carigali Sdn Bhd to farm-in to SK407 Production Sharing Contract (PSC), acquiring 45% equity in the PSC; effective 1st January 2023.
Block SK407, located offshore Miri in the prolific Baram Delta Province, is an important upstream oil and gas producing asset for PETROS and for Sarawak in its continuing efforts to increase its portfolio of equity hydrocarbon resources. Increasing State’s access to adequate hydrocarbon resources is critical to enable and propel the realisation of the Miri Hub development envisioned under Sarawak Gas Roadmap.
Heads of Agreement for Sale and Purchase of Natural Gas for Miri Hub
On 17 October 2022, representatives from PETRONAS and Petroleum Sarawak Berhad (PETROS) executed a binding Heads of Agreement for the sale and purchase of 60 MMscf/d of natural gas, sourced from offshore Sarawak, for a planned Power Plant in Miri, Sarawak.
This marks the beginning of the Miri Hub development as outlined in the Sarawak Gas Roadmap. The new gas-fired power plant will ensure energy security for Northern Sarawak; to complement the State’s hydropower in the energy-mix.
Carbon Capture Storage (CCS) Joint Collaboration Agreement
PETROS has entered into a Joint Collaboration Agreement with PETRONAS to jointly study the potential to develop and monetise CCS opportunities in Sarawak.
This collaboration explores, among other things, commercially viable CCS solutions as an enabler of sour gas reserves development (i.e. reserves containing naturally occurring CO2, besides natural gas) by capturing and sequestering CO2. Such developments, in turn, brings significant investment capital into Sarawak for decades to come, and generating high-income jobs.
Commenting on the key milestones, PETROS Group Chief Executive Officer, Janin Girie said, “The signings of these agreements are part of a focused effort to power the socio-economic development of Sarawak by actively participating throughout the oil and gas value chain – by increasing access to adequate hydrocarbon resources and expanding the domestic utilisation of our natural gas through industry partnerships to maximise positive benefits for Sarawakians.
He added, “This is in line with our efforts to support the Sarawak Government’s aspiration of being a developed state by 2030. PETROS is committed to our Purpose which is to harness Our Natural Resources for the Sustainable Progress of Sarawak.”
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