KUALA LUMPUR (Jan 17): Ping Petroleum Sdn Bhd, a unit of Dagang NeXchange Bhd (DNeX), has signed two production sharing contracts with Petroliam Nasional Bhd (Petronas) for the development and production of oil and gas (O&G) resources in Terengganu and Sarawak

The first PSC involves the Meranti cluster located 80km offshore Kuala Terengganu, where Ping is the operator with 60% participating interest, with the balance 40% held by Duta Marine Sdn Bhd.

The second PSC involves the A Cluster located 290km off the coast of Miri, Sarawak, where Ping is the operator with a 70% participating interest, while Petroleum Sarawak Exploration & Production Sdn Bhd holds the remaining 30%.

Petronas awarded the contracts following its Malaysia Bid Round 2022, said DNEX in a statement. Both PSCs were signed on Tuesday by Ping Petroleum Ltd's managing director Zainal Abidin Jalil, while Petronas was represented by senior vice president of Malaysia Petroleum Management, Mohamed Firouz Asnan. Ping Petroleum is DNeX’s oil and gas upstream exploration and production unit.

DNeX executive chairman Tan Sri Syed Zainal Abidin Syed Mohamed Tahir said the company is pleased to expand its portfolio onto the Malaysian shores with the maiden awards secured from Petronas.

“The inclusion of the Meranti Cluster and A Cluster in PPSB’s portfolio will re-establish the company’s position in our home territory, build on our proven track record for low-cost developments and operations in the UK and allow us to diversify our revenue stream and operations across multiple geographies. The total development cost for the two clusters will be determined after the development concepts have been finalised," he said.

He added that the two clusters can contribute to the material increase of Ping Petroleum’s contingent resources and support further growth opportunities, while reinforcing its energy business.
 
DNeX, via Ping, has two assets - the Anasuria and Avalon fields in the North Sea, UK. It focuses on shallow water production and development opportunities and is currently the joint operator of the Anasuria cluster (production) and sole operator of Avalon (development).

At the time of writing, DNeX was trading two sen higher at 58 sen, valuing the group at RM1.83 billion. The counter was also the second most actively traded stock in Bursa Malaysia with 101.57 million in volume.

https://www.theedgemarkets.com/node/652081