Page 10 - AsianOil Week 16 2021
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AsianOil SOUTHEAST ASIA AsianOil
Petronas launches new
small field PSC model
PROJECTS & MALAYSIA’S state-owned Petronas has marked
COMPANIES the launch of its new small field asset (SFA)
production-sharing contract (PSC) model by
awarding a shallow-water project to one of its
upstream subsidiaries.
Petronas said on April 21 that it had awarded
the contract for the South East Collins Cluster
to Vestigo Petroleum, which is a unit of Petro-
nas Carigali. The company already operates the
Irong Cluster PSC, SK315 PSC, PM335 PSC and
the Tembikai Chenang small field risk-sharing
contract (RSC).
The South East Collins Cluster, which is
located in 42-45 metres of water 70 km north-
east of Labuan Island, comprises the South East
Collins and Lokan fields that were discovered in
the 1980s. Petronas said the cluster had 10mn
barrels of estimated recoverable reserves. the revenue. These include capital expendi-
The state major has described the new terms ture, operational expenditure and abandon-
as a means of providing small field operators ment costs.
with the flexibility to “optimise operational costs Petronas said it had designed the SFA fiscal
and maximise the profit margin”. model to allow explorers to walk away from their
SFA PSCs are split into three stages – a fields once they had finished their pre-develop-
pre-development phase of up to two years, an up ment studies, which include a resource assess-
to two-year development phase and then an up ment as well as either a maturation study or the
to 10-year production period. drilling of an appraisal well.
When a field does enter production, the pro- This should, according to the state-major,
ject’s revenue will be split between Petronas and afford contractors “sufficient time to evaluate
the contractor after a 10% royalty cash payment technical and commercial risks prior to devel-
has been made to the government. Petronas’ opment commitment”.
share, which will be a fixed percentage during If the contractor moves forward with
the life of the contact, will be determined during the project then work will be carried out in
the bidding round by applicants but will have a accordance with an approved field develop-
minimum threshold. ment and abandonment plan (FDAP), which
The contractor, meanwhile, is expected must be submitted to Petronas two years after
to cover all of its outgoings from its share of the PSC has been signed.
PetroVietnam to build
LNG-fired power plant
PROJECTS & STATE-OWNED PetroVietnam reportedly metres). The project joins a growing list of LNG-
COMPANIES intends to build a $1.5bn liquefied natural gas to-power developments that have moved closer to
(LNG) fired thermal power plant (TPP) in the realisation in recent months, as the country looks
country’s southern province of Ca Mau. to replace some of its coal-fired power generation
Subsidiary PetroVietnam Power wants to begin with LNG.
building the 1,500-MW Ca Mau Power Plant 3, The Ministry of Industry and Trade’s draft
which will be located in Khanh An Commune, Power Development Plan (PDP) VIII has pro-
in 2022, with the facility slated for commissioning posed raising the share of gas-fired power capac-
in 2026, local daily VN Express reported on April ity from about 14.9% in 2020 to 21% in 2030 and
16. The plant will span 26 hectares (260,000 square 24% in 2045.
P10 www. NEWSBASE .com Week 16 22•April•2021
