KUALA LUMPUR: Dagang NeXchange Bhd (DNeX), via subsidiary Ping Petroleum Sdn Bhd, has signed a production sharing contract (PSC) with Petroliam Nasional Bhd (Petronas) to develop and produce petroleum and gas resources from three fields within the Abu Cluster.
The PSC is marketed under Petronas' Malaysia Bid Round 2022 (MBR 2022).
MBR is an annual Malaysia licencing round hosted by Petronas' Malaysia Petroleum Management, which offers investors diverse upstream opportunities including exploration acreages, discovered resource opportunities and late life producing assets.
The 10-year contract grants Ping Petroleum the right to develop and produce the petroleum and gas resources from the three fields within the Abu Cluster namely Abu, Abu Kecil and Abu SW Upthrown.
The Abu Cluster is located about 250km from the east coast of Peninsular Malaysia.
Ping Petroleum is a wholly-owned subsidiary of Ping Petroleum Ltd.
DNeX executive chairman Tan Sri Syed Zainal Abidin Syed Mohamed Tahir said the newly-secured contract reflected Ping's track-record as an operator that has the experience to manage a safe and environmentally sound operation abroad, as well as Ping's commitment to building out its portfolio at home.
He added that DNeX is committed to contributing to Malaysia's domestic energy supply, pursuing opportunities through its reinforced partnership with Petronas and building the company's portfolio of strategic production assets in fiscally transparent jurisdictions.
"This contract will further strengthen our track record in operating low-cost producing assets and allows us to diversify our revenue stream across multiple geographies," he said in a statement.
Earlier in January this year, Ping Petroleum signed two PSCs with Petronas for discovered oil and gas resources in Malaysia.