UK energy company EnQuest (LON:ENQ) has been awarded the rights to develop additional resources from its Seligi field gas resources in Malaysia.
The deal covers approximately 155bcf gas.
EnQuest Petroleum Production Malaysia is developing the project in partnership with Petronas Carigali Sdn Bhd (PCSB) and E&P Malaysia Venture (EPMV) and holds a 50% equity share in the development.
The partners signed a letter of agreement with Petronas to annex Seligi Field non-associated gas and condensate into its to be part of their PM8E asset, effective from 1 January 2025.
The agreement enables the PM8E parties to develop and commercialise the non-associated gas resources in the PM8E PSC contract area and, in line with expected demand, supply around 70mcf per day of sales gas.
EnQuest will produce the additional Seligi Field non-associated gas by modifying its existing infrastructure, which provides a cost-efficient way to deliver new volumes into the Peninsular Malaysia gas system and will help the nation meet its increasing energy needs.
These volumes also increase the gas component of EnQuest’s production, which aligns to the group’s strategic aim to reduce its overall carbon intensity.
EnQuest CEO Amjad Bseisu said: “I am pleased with the signing of this agreement, which enables EnQuest to develop and supply non-associated gas through our existing infrastructure. We look forward to collaborating with our partners in delivering on our commitments and we thank Petronas for their continued trust and confidence.
Malaysia is a key area for EnQuest’s growth strategy, and this agreement complements the signing of the DEWA Complex Cluster SFA PSC in October this year.”
Bseisu has previously pointed to Malaysia as a potential growth spot for the company as the UK’s taxation policies risk causing “irreversible damage” to its oil and gas industry.
He said that South East Asia offers a more “compelling” return on capital investment.
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