Petroliam Nasional Bhd. (Petronas) and Shell PLC have exited the Kebabangan Cluster Manufacturing Sharing Contract (KBBC PSC) offshore Malaysia’s Sabah state, leaving the manufacturing asset to co-venturer ConocoPhillips.
“With an export capability as much as 750 million commonplace cubic ft of fuel per day (MMscfd), the continuation of the KBBC PSC till the tip of 2050 and different business agreements have been structured to make sure future fuel area developments stay economically engaging in supporting Sabah’s power safety necessities”, Malaysia’s state-owned Petronas mentioned in a web based assertion.
Kebabangan had been below a three way partnership between the three firms. Petronas Carigali Sdn. Bhd. owned 40 p.c, whereas Shell Power Asia Ltd. held 30 p.c. ConocoPhillips Sabah Gasoline Ltd. has now elevated its possession from 30 p.c to 100%.
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The cluster contributed 47 million cubic ft a day of pure fuel and 1,000 barrels per day of oil to ConocoPhillips’ 2023 manufacturing, in response to a reality sheet revealed on-line by the Houston, Texas-based firm.
Kebabangan began manufacturing late 2014. The PSC ends 2037, says the actual fact sheet, revealed April 2024.
Kebabangan fuel is transported from the KBB platform through pipeline on the market to the home market. In 2019, KBB was tied in to a close-by third-party floating liquefied pure fuel vessel, which elevated fuel offtake capability, in response to ConocoPhillips.
Sabah Chief Minister Panglima Haji Hajiji mentioned of the total switch to ConocoPhillips, “Sabah is quickly rising as a most well-liked vacation spot for oil and fuel investments, due to the strategic developments and partnerships championed by PETRONAS and its business collaborators”.
“These initiatives underscore the huge potential of Sabah’s sources and reinforce our dedication to driving financial progress and creating alternatives for our individuals”, Panglima added.
Bacho Pilong, senior vp of upstream regulator Malaysia Petroleum Administration, welcomed what he mentioned is “ConocoPhillips’ expanded position in Malaysia’s upstream sector, which underscores the continued confidence within the nation’s power potential”.
Lately the identical Kebabangan consortium gained 5 fields offshore Sabah, one among two states on the Malaysian facet of Borneo island. The fields — Bagang, Batai, Biris, Rempah and Ubah — are below the Deepwater Income-over-Price PSC, or the Ubah Cluster.
“The Ubah Cluster can vastly profit from integration with the Kebabangan area, particularly contemplating that each are operated by the identical contractors – this integration can result in numerous synergies and benefits for the operations of each fields”, Petronas mentioned in a press launch December 5, 2024.
The areas have been a part of the 2024 Malaysia Bid Spherical. Petronas is scheduled to launch the subsequent Malaysia Bid Spherical within the first quarter of 2025.
To contact the writer, e-mail jov.onsat@rigzone.com
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