South Korea’s Posco International has officially been awarded a production-sharing contract (PSC) for Block PM524 in Peninsular Malaysia.
Posco will operate the block with an 80% share on behalf of partner Petronas Carigali.
“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, Petronas said in a statement yesterday.
“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 (CCS),” said senior vice president of Malaysia Petroleum Management Mohamed Firouz Asnan.
“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.