Petronas Carigali has entered into a heads of agreement with JX Nippon Oil & Gas Exploration Corporation (JX Nippon) to collaborate in developing a joint proposal to monetise the gas potential within the Bujang, Inas, Guling, Sepat and Tujoh (BIGST) fields, located offshore Kerteh, Terengganu, Malaysia.
Significantly, the deal is expected to spur development of other high contaminant fields in Malaysia as the pair plan to develop a carbon capture and storage (CCS) hub. The news follows Petronas’ recent announcement that it has approved investment for its giant Kasawari CCS project.
“The BIGST opportunity was offered as part of Malaysia Bid Round (MBR) 2020, where it had received several proposals from interested parties. Petronas Carigali and JX Nippon were shortlisted based on the quality of their submissions and unique value propositions,” Petronas said today.
The business value proposition by Petronas Carigali and JX Nippon will form the basis towards the negotiation of the PSC for this cluster, added Petronas.
“The gas supply from BIGST fields is important for Peninsular Malaysia’s energy security given the significant potential that exists within the cluster. Carbon capture and storage (CCS) technology will be key solutions in monetising the fields since these fields contain high carbon dioxide (CO2) and will be the first CCS project in Peninsular Malaysia,” said Senior General Manager, Resource Development and Management, Malaysia Petroleum Management (MPM), Aidil Shabudin.
The BIGST cluster will also be the catalyst that is expected to spur the development of other high contaminant fields in Peninsular Malaysia which was not possible prior to this, due to the lack of complete CO2 handling infrastructure, noted Petronas.
“Petronas Carigali is expected to bring to the table its capability in developing CCS projects building on its recent experience on Kasawari CCS, that was sanctioned recently. PETRONAS would move closer towards its aspiration of achieving Net Zero Carbon Emissions (NZCE) by 2050 through these carbon reduction solutions,” added Aidil.
Petronas, through MPM, manages petroleum arrangements in Malaysia and provides stewardship on upstream petroleum activities.
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