Malaysian offshore service provider Tanjung Offshore, part of T7 Global, has received a $12.2 million contract from Petronas for the provision of plug and abandonment integrated services on the Pulai A field offshore Malaysia.
The contract, effective until December 28 this year, is valued at about MYR50 million ($12.2 million) based on the agreed rates as stipulated in the deal.
“We are optimistic of the local oil and gas industry due to the steady outlook for the next three years as Petronas remains committed to maximise its oil production and there are more than 500 wells planned to be plugged permanently by 2030 due to the increasing trend of idle wells. Over the next few years, we aim to win more similar jobs by providing innovative well solutions to Petronas and other oil majors in the region,” said T7 Global chairman Datuk Seri Dr. Nik Norzrul Thani Bin N. Hassan Thani.
The deal is awarded to Tanjung Offshore under the Pan Malaysia umbrella contract for the provision of integrated well services for intervention, workover and abandonment for petroleum arrangement contractors where the company was appointed as one of the panel contractors back in September 2019.
More than 200 offshore fields are expected to stop producing in Southeast Asia by 2030 with total decommissioning costs estimated to range from $30 billion to as much as $100 billion.