Companies amend gas sales pact with Petronas

Date:

KUALA LUMPUR: Hess Malaysia and its partner, Petronas Carigali Sdn Bhd, a subsidiary of Petronas, have successfully concluded negotiations with Petronas to amend the Upstream Gas Sales Agreement (UGSA) of the PM302 Production Sharing Contract (PSC).

In a statement, Hess Malaysia – a leading global energy company – said the agreement was amended to include the sale and purchase of gas produced by the Kangsar field as well as gas produced from any future PM325 PSC field under the existing UGSA terms.

Its vice-president, Zhiyong Zhao said the amended UGSA was an important milestone for the ongoing development of the North Malay Basin (NMB) project as it delivers access to new gas supplies that are critical to Malaysia’s economic prosperity and energy security.

“The arrangements strengthen Hess Malaysia’s position as a key natural gas supplier for the country and build on the longstanding and successful partnership between Hess, Petronas and the people of Malaysia.

“We look forward to continuing this fruitful partnership as we further develop the NMB project,” he said.

The UGSA governs the sale and delivery of gas from the NMB project to Petronas and helps the national energy and solutions company meet its supply and sale commitments in Peninsular Malaysia.

Hess Malaysia said the Kangsar natural gas field, located offshore Peninsular Malaysia, was discovered in 2018 and is part of the recently sanctioned NMB Phase 4A development, with first gas targeted in the third quarter of 2022.

“Hess Malaysia and Peteronas Carigali Sdn Bhd signed a Heads of Agreement (HoA) last year to unitise the field for development, and Hess Malaysia is currently in Phase 2 of the NMB development.

“The drilling programme for Phase 3 is expected to commence in the third quarter of this year with first gas planned in the first quarter of 2022,” it said. – Bernama

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