Page 12 - AsianOil Week 17 2022

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Petronas, Sabah sign MoU on

nearshore FLNG development

PROJECTS & PETRONAS and Sabah Oil & Gas Development The MoU builds on two front-end engineer-
COMPANIES Corp. (SOGDC) have signed a memorandum of ing and design (FEED) contracts that Petronas
understanding (MoU) on the development of a awarded to a consortium of JGC and Samsung
nearshore floating LNG (FLNG) facility in the Heavy Industries and to Saipem in December as
Malaysian state of Sabah in Borneo. part of a FEED design competition for the pro-
Under the MoU, SOGDC will support Petro- ject. The FEED design competition has a dura-
nas in securing all necessary approvals, permits tion of 10 months, with Petronas targeting a final
and other requirements as they work to realise investment decision (FID) on the FLNG facility
the project, according to local media. at the end of 2022.
SOGDC is wholly owned by the Sabah state If an FID is reached, the winning FEED con-
Petronas operates government and the MoU represents its lat- tractor will be rolled over to the engineering,
two FLNG projects in est step in collaboration with Petronas to drive procurement, construction and commission-
open seas but the new natural gas development in the state. The FLNG ing (EPCC) phase. The terminal would then be
venture would be the project, known as ZLNG, is one of three major ready for start-up by the end of 2026, according
first nearshore FLNG investment opportunities identified by the Sabah to a previous announcement by Petronas.
project. government and Petronas in the Sabah Gas Mas- The Malaysian company has touted the
terplan, which they jointly launched at the start nearshore FLNG project as the first of its kind
of this year. in Malaysia, saying the design and construction
The facility would have a capacity of at least of such a facility would be simpler than that of
2mn tonnes per year (tpy) of LNG and officials an FLNG project intended for open seas. The
have said it would cost MYR8.8bn ($2.0bn) to company operates two such FLNG projects in
develop. It would be located in the Sipitang Oil open seas at the Kebabangan and Rotan offshore
and Gas Industrial Park (SOGIP). gas fields.™

SK earthon takes on operatorship

of block offshore Malaysia

INVESTMENT SK earthon, a unit of South Korea’s SK Inno- touted the bid round as evidence of Malaysia’s
vation, has taken on the operatorship of Block potential as an attractive investment destination
SK427 off the coast of Sarawak, Malaysia. The for energy companies.
company owns an 85% interest in the block, “Under our ‘right asset, right player’ strategy
with Malaysia’s Petroleum Sarawak Exploration supported by a progressive fiscal regime, we
& Production (PSEP) taking on the remaining hope to fully maximise the long-term value of
15%. the nation’s hydrocarbon resources,” he stated.
The two companies signed a produc- The PSC for Block SK427 represents SK
tion-sharing contract (PSC) for the block with earthon’s first project in Malaysia. According
Malaysia’s state-owned Petronas on April 22. to the announcement, the company will also
According to Petronas’ announcement, Block collaborate with Petronas on carbon capture
SK427 is located within the Balingian and Tatau and storage (CCS). No further details were pro-
hydrocarbon provinces, which span an area of vided on the companies’ CCS collaboration, but
3,349 square km. Petronas said the block was sit- it would be the latest in a series of partnerships
uated in a proven hydrocarbon system and had Petronas has announced relating to the rapidly
“promising hydrocarbon potential”. It noted that growing industry.
several significant hydrocarbon discoveries had The Malaysian company is targeting net-zero
been made near the block in the Balingian prov- greenhouse gas (GHG) emissions from its oper-
ince in 2021, citing the Sirung-1 and Hadrah-1 ations by 2050 and under current plans, CCS
wells in particular. would play a major role in helping it to achieve
Block SK427 is one of six blocks awarded that goal. Since the start of the year, Petronas has
under the Malaysia Bid Round 2021. Petronas’s announced collaborations on CCS with other
senior vice president of Malaysia Petroleum companies, including Shell and Japan Petroleum
Management (MPM), Mohamed Firouz Asnan, Exploration (JAPEX).™

P12 www. NEWSBASE .com Week 17 29•April•2022