Page 6 - AsianOil Week 44 2021

AsianOil SOUTHEAST ASIA AsianOil

Petronas awards shallow-

water PSC to POSCO

PROJECTS & MALAYSIA’S state-owned Petronas has
COMPANIES awarded a production-sharing contract (PSC)
for offshore Block PM524 to a joint venture led
by South Korea’s POSCO International.
Petronas said on November 1 that POSCO
International E&P Malaysia would operate the
block with an 80% stake, while Petronas Carigali
Sdn Bhd (PCSB) would hold the remaining 20%.
The 4,738-square km Block PM524 is located
in the Malay Basin in around 50-80 metres of
water and is surrounded by several producing
fields that supply gas to the Peninsular Malay-
sia market. Petronas is already developing the
block’s Tangga Barat field and POSCO has said it
may use the field’s existing production facilities
to reduce the time and cost of bringing the rest of
the block on stream.
Under the terms of the contract, a four-year
exploration period will be followed by a 24-year
development and production phase. The South
Korean developer intends to begin explora- POSCO is looking to expand its international
tion and drilling in 2025 once it has conducted operations after the recent coup in Myanmar,
analysis. where the South Korean firm’s overseas opera-
Petronas’ senior vice-president of domes- tions are currently concentrated. POSCO owns
tic petroleum management, Mohamed Firouz a majority stake in the Shwe gas project, which
Asnan, highlighted both POSCO’s experience comprises three Bay of Bengal gas fields.
in operating gas fields elsewhere in the region as The South Korean firm is in takeover talks
well as its efforts to develop carbon capture and with Australian independent Senex Energy after
storage (CCS) technology. submitting an AUD815mn ($602.3mn) all-cash
The executive added: “Under our right asset, takeover bid for the developer in September.
right player strategy, supported by a progressive In Indonesia, meanwhile, POSCO signed a
fiscal regime, we hope to fully maximise the joint study agreement (JSA) with state-owned
long-term value of the hydrocarbon resources Pertamina Hulu Energi (PHE) in June to find
in Malaysia, especially in Peninsular Malaysia, exploration opportunities in more than 11,500
where the demand is expected to increase.” square km of offshore acreage.™

Vietnam warns of continued

slide in oil production

PERFORMANCE THE Vietnamese government has warned that a bpd), which will represent an almost 12% con-
years-long decline in national oil production will traction from the 9.7mn tonnes (194,800 bpd)
speed up in 2022, with output predicted to slump of oil Vietnam produced in 2020.
by almost 18%. The minister said state-owned PetroViet-
Crude production is projected to fall to 7mn nam was struggling to increase crude produc-
tonnes (140,000 barrels per day) next year, accord- tion owing to the fact that the majority of the
ing to an October 30 report by VN Express that country’s wells are in decline. Phoc said wells
quoted Vietnamese Finance Minister Ho Duc that had been in production for 15-35 years
Phoc’s address to the National Assembly. were now posting annual declines of around
Phoc’s projections suggest that production 15-25%. The official warned that lower pro-
this year will amount to 8.54mn tonnes (171,500 duction levels could see government oil

P6 www. NEWSBASE .com Week 44 04•November•2021