Malaysia’s Petronas hopes to lure investors to marginal fields with new scheme

February 19, 2021

Dateline 2021-02-05, Energy Voice:

Petronas MPM has officially introduced Malaysia’s Small Fields Asset (SFA) production-sharing contract framework as part of an effort to revive its domestic upstream sector and lure new money.

“I think all the smaller players here – Hibiscus – and many of the service linked companies such as T7, Dialog, Uzma, etc will be bidding. This does not seem like anything foreign firms will want neither does Petronas want them. They are trying hard to keep a domestic oil sector alive and it is on life support so this will be a lifeline to them,” a Malaysia-based industry source told Energy Voice.

SFA aims to attract investors to monetise small or marginal discovered fields with resource size less than 15 million barrels of oil or less than 300 billion cubic feet of gas. It is a straightforward and simplified PSC model which gives the contractor full control over the costs, procurement and operations.