Petronas has signed two key agreements with Petroleum Sarawak (PETROS) on collaboration opportunities under the Sarawak Gas Roadmap that will help accelerate both parties’ shared aspirations to sustainably grow the Malaysian state’s energy industry.
The first is a heads of agreement (HOA) to expand the usage of natural gas within the state for the supply of 60 MMscfd of gas starting by 2026 to the proposed 400 MW Combined Cycle Gas Turbine power station in Miri.
This follows the MoU which was signed in December 2021 relating to the revised total natural gas supply to Sarawak for the implementation of projects under the Sarawak Gas Roadmap. In relation to this, Petronas will be developing new gas resources as well as the associated offshore and onshore infrastructures to support the additional gas supply. This marks the beginning of the Miri Hub development as outlined in the roadmap.
In addition to the HOA, Petronas and PETROS will also work closely to establish carbon capture and storage (CCS) as a new business opportunity through a roadmap study for a CCS ecosystem, in positioning Sarawak as a regional sequestration hub. Both parties will also seek to foster Sarawak companies’ participation and local talent development in this new area. To formalise this, a joint collaboration agreement (JCA) was inked to facilitate the stewardship of CCS development and its operationalisation in Sarawak, as the industry transitions towards a low carbon future.
Both the HOA and JCA were signed on 19 October 2022 during a ceremony to commemorate PETROS’ fifth anniversary.
PETRONAS Executive Vice President and Chief Executive Officer of Upstream, Datuk Adif Zulkifli said, “As a long-term partner of Sarawak, PETRONAS continues to play its role in developing a sustainable and progressive oil and gas industry in the energy transition landscape, through world class projects such as the Kasawari gas development which includes the application of carbon sequestration technologies.”
“At the same time, PETRONAS continues to attract new investments into the upstream sector to support the increase in gas demand as envisioned in the Sarawak Gas Roadmap,” he added.
On the same day, PETRONAS Carigali Sdn Bhd (PCSB), a wholly-owned subsidiary of PETRONAS entered into a Farm Out Agreement with Petroleum Sarawak Exploration and Production Sdn Bhd (PSEP), a wholly-owned subsidiary of PETROS for the sale of PCSB’s 45 per cent of non-operating participating interest in Block SK407 PSC. This is PSEP’s third participation in upstream producing assets, after the successful farm-ins into MLNG Satu PSC and Kumang Cluster PSC in 2021.
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