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(WO) – PETRONAS recently signed a Late Life Asset Production Sharing Contract with Ping Petroleum Sdn. Bhd. for the Abu Cluster offshore Peninsular Malaysia.

The Abu Cluster is made up of three developed fields, namely Abu, Abu Kecil and Abu SW Upthrown, with the remaining reserves of five million stock tank bbl.

Signing on behalf of PETRONAS was Senior Vice President of Malaysia Petroleum Management (MPM) Mohamed Firouz Asnan, while Ping Petroleum was represented by its Managing Director, Zainal Abidin Abdul Jalil.

Mohamed Firouz said, “With this award, PETRONAS is looking forward for Ping Petroleum to maximize the recovery from the Abu field, which registered a peak production of 15,000 bpd back in 2008. Furthermore, with the implementation of enhanced commercial terms for LLA streamlined operational procedures, we are empowering the operator to apply their capabilities to monetize the Abu Kecil and Abu SW Upthrown fields.

“The latent potential in Abu Field, plus the upsides in the other two fields, are expected to provide an equitable return to both host authority and investor, especially in funding the abandonment requirements of existing facilities,” he added.

PETRONAS is unlocking the full potential of Malaysia's hydrocarbon resources, maximizing value for its partners and the company, guided by the 'Right Asset, Right Player' strategy and supported by a progressive fiscal framework. It is balancing its ongoing efforts of ensuring energy security domestically and globally, while addressing the energy transition by building a more sustainable upstream industry.

As the custodian of the national hydrocarbon resources, PETRONAS, through MPM, manages petroleum arrangements in Malaysia and provides stewardship on upstream petroleum activities