Page 13 - AsianOil Week 48 2022

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Malaysia's Petronas takes FID

on CCS project

POLICY MALAYSIA’S state-owned Petronas it has positioned as one of the centrepieces in
announced last week it had taken a final its strategy for reaching net-zero greenhouse
An engineering contract investment decision (FID) on developing the gas (GHG) emissions by 2050. Petronas
for the project was Kasawari carbon sequestration project off the announced this commitment in November.
recently awarded. coast of Sarawak. The company’s short-term target is to cap
The project, situated at Block SK316 off its GHG Scope 1 and 2 emissions at 49.5mn
Bintulu, is set to sequester 3.3mn tonnes per tonnes of CO2 equivalent in Malaysia. It is also
year (tpy) of CO2 equivalent, placing it among striving towards a 50% reduction in methane
the largest offshore carbon capture and storage emissions by the middle of this decade.
(CCS) projects in the world. The FID at Kasawari comes after Petronas
“This project is expected to become the cat- awarded an engineering, procurement, con-
alyst in achieving end-to-end CCS capability struction, installation and commissioning
development within Petronas and the first step (EPCIC) contract for the project to Malaysia
in unlocking Malaysia’s potential as a regional Marine and Heavy Engineering last month.
CCS solutions hub,” Hasliza Othman, CEO of Petronas awarded a front-end engineering
Petronas’ upstream arm, said in a statement. and design (FEED) contract for the project to
Petronas did not say how much investment a consortium led by Abu Dhabi-based National
would go into the Kasawari CCS project, which Marine Dredging in April this year. ™

NEWS IN BRIEF

Valeura Energy books tanker for operations as soon as practicable upon reduction was expected to result in interest
savings of ~A$1.3 million per year and that
the tanker's arrival, targeting initial oil
Gulf of Thailand oilfield production rates of up to 3,000 bbls/d, net it deferred the next scheduled amortization
to the 89% working interest held by its
payment to June 2024 (A$5.5 million) with
Oil and gas company Valeura Energy has special purpose vehicle subsidiary, Valeura a final amortization payment of A$7.5
entered into a definitive agreement with PT Energy Asia Pte. Ltd. million be completed prior to the facility
Samudra Alam Transport to charter the MT The company in October agreed with maturity in January 2025.
Vula crude oil tanker to store oil produced Petrovietnam Drilling and Well Service Following the completion of the sale,
from the Wassana oil field, offshore in the Corporation to charter the PV Drilling I MMA’s net debt position (including ~A$13
Gulf of Thailand. jack-up drilling rig to support its Gulf of million of lease liabilities) has reduced to
In Q2 2022, Valeura acquired KrisEnergy Thailand operations in 2023. ~A$30 million (on an unaudited basis)
International (Thailand) Holdings Ltd. The PV Drilling I rig is expected to which equates to a net debt leverage ratio
which owns and operates two licenses in the mobilize to the Wassana oil field in mid-Q2 of less than 1.0x, based on the Company’s
offshore Gulf of Thailand. 2023, where it will conduct an initial scope FY22 EBITDA, the company said.
The acquisition included the suspended of work comprised of the company's five- As a result of the transaction, MMA
Wassana oil field and the fully appraised well infill drilling program. Offshore's net tangible assets (“NTA”) have
Rossukon oil field. Additionally, through increased by ~ 5 cents per share from the 30
a separate agreement, the company agreed June 2022 NTA position of 95 cents (on a
to acquire the Mobile Production Unit MMA Offshore sells Batam pro-forma basis), the company said.
Ingenium (“MOPU”) which is on location MMA’s Managing Director, David Ross
at the Wassana oil field. shipyard said: “We are pleased to conclude the sale of
Valeura said this week that the oil tanker the Batam shipyard facility which completes
to be chartered for Wassana would be Australian offshore vessel operator MMA MMA’s non-core asset divestment program.
renamed MT Jaka Tarub. Offshore has completed the sale of its shipyard Our strengthened balance sheet provides
The MT Jaka Tarub is a Panamax-sized in Batam, Indonesia. The planned sale was additional flexibility with regard to capital
oil tanker, with a storage capacity of 460,000 first announced back in May when MMA management and positions MMA well to
bbls. Following cleaning and modification Offshore said it would sell its shipyard facility take advantage of growth opportunities and
work scheduled for December 2022, the to Wasco Engineering Group. capitalise on the positive momentum we are
vessel will be made compatible with the "The final installment of the US$15 currently seeing in our key markets.”
Wassana field’s mooring and crude oil million purchase price has been received MMA Offshore's Batam Shipyard facility
offloading systems. with the total proceeds from the sale to spans just over 18 hectares, with warehouse
Pending customs clearance, the MT Jaka be used to make a voluntary prepayment storage, significant open laydown area,
Tarub is expected to arrive at the field in of amortization on the company’s debt and direct water-frontage. MMA Offshore
early January 2023. facility," MMA Offshore said Friday. bought it in 2014.
Valeura plans to resume production MMA Offshore said that this debt

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