The award development and production contracts to local players is a game changer for local oil and gas (O&G) service providers as this is the first time local players have been invited to participate.
UOB Kay Hian (Malaysia) Holdings Sdn Bhd (UOB Kay Hian) in its report pointed out that newsflow on this sector would be forthcoming and would act as a near term catalyst for a sector-wide re-rating. This move was intended to groom and moved local O&G players up the value chain.
To recap, Petronas had awarded a risk sharing contract (RSC) to develop and produce the Berantai field to a joint operating party (JOP) formed by a tripartite.
Petrofac Energy Development, a London-listed O&G exploration and production (E&P) company would take a 50 per cent stake, while SapuraCrest Petroleum Bhd (SapuraCrest ) and Kencana Petroleum Bhd (Kencana) would each have a 25 per cent equity participation in the JOP.