We are proud to share that Skrine acted for Ping Petroleum on its entry into a Late-Life Asset Production Sharing Contract with PETRONAS for the development Abu Cluster in offshore Peninsular Malaysia.
Ping Petroleum Sdn Bhd (“Ping Petroleum”), a unit of Dagang NeXchange Bhd (DNeX), entered into a Late-Life Asset Production Sharing Contract (“PSC”) with PETRONAS in respect of Abu Cluster Offshore Peninsular Malaysia, in a move to maximise recovery from the Abu Cluster. The Abu Cluster comprises 3 discovered fields, namely Abu, Abu Kecil and Abu SW Upthrown containing an estimated remaining reserves of 5 million stock tank barrels.
Ping Petroleum will become the operator of the PSC with 100% participating interest in the PSC.
The Late-Life Asset PSC executed by Ping Petroleum reflects the enhanced commercial terms introduced for end of life assets which aims to implement streamlined operational procedures, a gross split fiscal regime and other cost-saving mechanisms, empowering the operator to apply their capabilities to monetize the late-life assets and maximizing the economic benefits lie within such fields.
The deal team was led by Partner, Fariz Abdul Aziz
who was assisted by Senior Associate, Tan Wei Xian
Media Release of this transaction can be accessed at: