PETRONAS Awards Late Life Asset PSC for Production Continuity of Banang Field

KUALA LUMPUR, 12 June 2024 – PETRONAS, through Malaysia Petroleum Management (MPM) recently awarded a Late Life Asset Production Sharing Contract (LLA PSC) for Banang field, located offshore Peninsular Malaysia to Petra Energy Development Sdn. Bhd. (PEDSB), a wholly owned subsidiary of Petra Energy Berhad. PEDSB is the operator of the field with 100 percent participating interest.

This LLA PSC arrangement, which commences on 1 June 2024, is a new agreement to replace the Technical Service Agreement (TSA) with PEDSB to manage Banang field production operations on behalf of PETRONAS, which ended on 31 May 2024.

PETRONAS Senior Vice President of MPM, Datuk Ir. Bacho Pilong said, "The award of the Banang LLA PSC signifies a strong partnership with Petra Energy Berhad to produce and deliver a secure and reliable energy supply for the country and our customers. PETRONAS will continue to further its collaboration with local industry players in making Malaysia an attractive investment choice.”

The Banang field had achieved its first oil production in 2014 as part of Kapal, Banang and Meranti Cluster Small Field Risk Service Contract and the field had reached its peak production of 14,000 barrels per day in 2015.

MPM acts for and on behalf of PETRONAS in the overall management of Malaysia’s petroleum resources throughout the lifecycle of upstream oil and gas assets. MPM is pursuing deliberate efforts towards achieving low-carbon low-emission operations.

More information on investment opportunities in Malaysia’s upstream sector is available at https://www.petronas.com/mpm/.