The first of the two production sharing contracts (PSCs) is for the work on oil and gas resources in the Meranti cluster, which is located 80km offshore from Kuala Terengganu.

As the operator of the cluster, PPSB will hold a 60% interest while Duta Marine Sdn Bhd (DMSB) holds the remaining 40%, according to a media statement issued by Dagang NeXchange Bhd (DNeX). PPSB is a subsidiary of DNeX.

The second PSC is for work in cluster A, which is located 290km offshore from Miri. PPSB has a 70% participating interest in the PSC while Petroleum Sarawak Exploration & Production Sdn Bhd (PSEP) owns the remaining 30%.

The contracts were awarded by Petronas in its Malaysia Bid Round 2022.

DNeX executive chairman Zainal Abidin Syed Tahir said the development costs of the two clusters will be determined after the development concepts have been finalised.

“The inclusion of the Meranti Cluster and Cluster A in PPSB’s portfolio will re-establish the company’s position in our home territory,” he said.

“It will build on our proven track record for low-cost developments and operations in the UK and enable us to diversify our revenue stream and operations across multiple geographies,” he added.

Zainal Abidin said the two clusters could contribute to the material increase in PPSB’s contingent resources and support further growth while reinforcing its energy business.

DNeX, through its wholly-owned subsidiary Ping Petroleum Limited, also has two assets in the Anasuria and Avalon fields in the North Sea.

The company, which focuses on shallow water production and development, is a joint operator of the Anasuria cluster and the sole operator in Avalon.