Oil & gas quartet partners up to unlock over 6.5 trillion cubic feet of Asian gas

By inking a series of farm-out agreements, four oil and gas companies have joined forces to develop more than 6.5 trillion cubic feet (tcf) of natural gas offshore Sarawak. This enables PTTEP HK Offshore (PTTEP HKO), a wholly owned subsidiary of Thailand’s PTTEP, TotalEnergies EP Exploration, a subsidiary of France’s TotalEnergies, KUFPEC Malaysia, a subsidiary of Kuwait Foreign Petroleum Exploration Company (KUFPEC), and Petronas Carigali Sdn. Bhd. (PCSB), a subsidiary of Malaysia’s Petronas, to slash costs and optimize operational synergy.

PTTEP, TotalEnergies, KUFPEC, and Petronas’ farm-out agreements are related to joint investment in the SK410B Lang Lebah and B14 gas fields off the coast of Sarawak, offshore East Malaysia.

These deals are subject to customary conditions precedent, including regulatory approvals. Upon completion, the consortium for both fields will comprise TotalEnergies as the operator with a 30% interest, alongside PTTEP HKO and KUFPEC with 25% each, and PCSB with the remaining 20% stake.

The B14 gas field is located 14 kilometers from the Lang Lebah natural gas field under the Malaysia SK410B project. According to PTTEP, integrating development of the two fields will enhance project value by optimizing development costs and creating operational synergy.

This story was originally published by Offshore Energy. Read the full story at Offshore Energy →