KUALA LUMPUR: Jadestone Energy Holdings Ltd, a subsidiary of Singapore-based Jadestone Energy plc (Jadestone), has become the latest upstream investor and operator in Malaysia.
This is following the completion of its acquisition of four producing assets in the offshore of Peninsular Malaysia from SapuraOMV Upstream (PM) Inc (SapuraOMV PM), a subsidiary of SapuraOMV Upstream Sdn Bhd.
On April 30, SapuraOMV Upstream Sdn Bhd and Jadestone Energy plc (Jadestone) entered into a conditional sale and purchase agreement (SPA) for the acquisition of SapuraOMV PM for a total cash consideration of US$9mil (RM38.02mil).
Among the conditions of the SPA is the regulatory approval from Petroliam Nasional Bhd (Petronas), which was granted on July 15.
In a statement yesterday, Petronas said the producing assets acquired by Jadestone were the AAKBNLP, PM318, PM323 and PM329 production sharing contracts (PSCs).
“SapuraOMV PM is the operator of PM323 and PM329 PSCs,” it added.
The average year-to-date net entitlement production of the PSCs is around 6,000 barrels oil equivalent per day.
Currently, SapuraOMV PM is producing a total of 37,000 barrels oil equivalent per day from its Malaysian operations.
According to Petronas senior vice-president of Malaysia petroleum management Mohamed Firouz Asnan, the acquisition is proof that Malaysia remained attractive with diverse investment opportunities to suit different investors’ appetite and capabilities.
“We welcome Jadestone’s debut in Malaysia’s upstream sector.
“Having the right asset placed in the hands of the right player unlocks its full potential, thus maximising returns for both our upstream investors and Petronas as the custodian of hydrocarbon resources in Malaysia.
“We believe Jadestone’s experience and skills in extending asset life, combined with its focus on enhancing production and cost optimisation, will improve margins whilst prolonging the economic life of offshore fields, contributing to the overall sustainability of the oil and gas production for the country,” he added.
Petronas is also currently hosting the Malaysia Bid Round (MBR) 2021 themed “Grow your energy portfolio with us” in a quest of unlocking the full potential of Malaysia’s hydrocarbon resources.
MBR 2021 offers 13 new opportunities in Malaysia’s basins, accompanied by fiscal and non-fiscal terms in the PSC such as enhanced profitability for the shallow water blocks, the late life assets and small field assets, which are designed to match the risk and rewards of investments with the type of assets available.
Meanwhile, SapuraOMV yesterday announced the closing of the transaction to divest its stakes in several producing assets in the offshore of Peninsular Malaysia.
The company said it has sold its entire interests in several producing assets to Jadestone.
