In the downstream sector, its subsidiary OGPC Sdn Bhd clinched a one-year proof of concept (POC) contract from Petronas Dagangan Bhd (PDB) to maintain 50 Petronas stations in the Klang Valley, starting July 1, 2025.
PDB has over 1,000 stations across Malaysia while there are about 3,500 petrol stations of all brands throughout the country.
As part of the contract, OGPC’s full suite of services will leverage on DNeX IT’s solutions and artificial intelligence (AI) services.
DNeX group CEO Faizal Sham Abu Mansor said the contract with PDB aligns with the group’s strategic goal to boost revenue by expanding its footprint in the retail downstream O&G sector.
“This opportunity enables DNeX Energy to leverage on the group’s capability and expertise to offer a suite of services through the POC model, before embarking on a full-fledged opportunity upon conclusion of the POC,” he said in a statement today.
In the upstream sector, its subsidiary Ping Petroleum Sdn Bhd (PPSB) received approval from Petronas Malaysia Petroleum Management for its field development and abandonment plan for the BETA cluster and undeveloped fields within the Abu Cluster.
DNeX said this key approval green lights the development of five fields, collectively referred to as the Greater Abu Development Area, significantly expanding PPSB’s production capabilities in Malaysia.
The Abu Cluster is located in the Malay Basin, approximately 200-250km off the east coast of Peninsular Malaysia in the South China Sea.
DNeX said the expanded development can leverage shared infrastructure, hence creating substantial operational expenditure synergies.
The Greater Abu Development falls under Malaysia’s late-life asset and small field asset production sharing contracts, which Petronas introduced to encourage operators to develop and maintain production from brownfields and untapped marginal fields.
PPSB also recently secured a crude oil offtake arrangement for its crude from both the Anasuria Cluster (in the North Sea) and Abu with Petronas Trading Corp (Petco).
“Our development plan and the offtake arrangement entered with Petco will also ensure sustainable cashflow coming into Ping, once the first oil is produced in the Abu field,” Faizal said.
Its immediate focus will be on the reactivation of the Abu Cluster, where field work is progressing towards a targeted first oil in 2026 with an expected initial production rate of 3,000 barrels per day.
Ping Petroleum operates through two arms, namely PPSB for its Malaysian operations and Ping Petroleum UK Plc for its UK operations.
The Abu and BETA developments represent the next phase in DNeX’s plan to replicate its successful low-cost operating model in the UK where the group has operated the Anasuria Cluster profitably since 2016.
DNeX operates three key business divisions – semiconductor, energy, and information technology.
The stock closed 2% or half a sen higher at 26 sen, valuing it at RM904 million. Year to date, the share price is down 13%.