Transaction News: Skrine advised on Ping Petroleum’s entry into the Malaysian E&P sector with the signing of Production Sharing Contracts with PETRONAS for Meranti Cluster in offshore Peninsular Malay

17 February 2023

We are pleased to share that Skrine acted for Ping Petroleum Sdn. Bhd. in respect of its entry into Production Sharing Contracts with PETRONAS for development and production of Meranti Cluster in offshore Peninsular Malaysia and A Cluster off the coast of Sarawak, following the award from Malaysia Bid Round 2022. Both PSCs are awarded under the fiscal regime of the new Small Field Asset PSC terms, which encompasses new approach to the fiscal model as well as simplification of the supporting processes.

Ping Petroleum Sdn Bhd, a unit of Dagang NeXchange Bhd (DNeX), has signed two production sharing contracts with PETRONAS for the development and production of Meranti Cluster in offshore Peninsular Malaysia and A Cluster off the coast of 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%.

The inclusion of the Meranti Cluster and A Cluster in Ping Petroleum Sdn Bhd’s portfolio has established the company’s upstream investment footprint in Malaysia.

The Skrine deal team was led by Skrine’s Oil & Gas practice head, Fariz Abdul Aziz who was supported by Senior Associate, Tan Wei Xian.

Media coverage of the transaction can be accessed at:

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

https://www.petronas.com/mpm/press-release/petronas-signs-new-discovered-resource-opportunities-production-sharing-contracts

http://www.pingpetroleum.com/Media/DNeX-s-Energy-unit-expands-its-foray-into-Malaysia-with-PETRONAS-deals.php