Petronas, JX Nippon sign pact on high CO2 gas fields
SUMMARY
Carbon capture and storage (CCS) technology will be key solutions in monetising the fields located offshore Malaysia, Petronas said.
By Shardul SharmaPOSTED IN:
Petronas has entered into a heads of agreement with JX Nippon Oil & Gas Exploration Corporation to collaborate on monetising the gas potential within the high carbon dioxide-containing Bujang, Inas, Guling, Sepat and Tujoh (BIGST) fields, located offshore Kerteh, the company said on December 12.
The BIGST opportunity was offered as part of the Malaysia Bid Round (MBR) 2020. “Petronas Carigali (PCSB), a unit of Petronas, and JX Nippon were shortlisted based on the quality of their submissions and unique value propositions,” Petronas said.
The business value proposition by PCSB and JX Nippon will form the basis towards the negotiation of the PSC for this cluster, Petronas added.
“The gas supply from BIGST fields is important for Peninsular Malaysia’s energy security given the significant potential that exists within the cluster,” said Petronas senior general manager, resource development and management, Malaysia Petroleum Management, Aidil Shabudin.
“Carbon capture and storage (CCS) technology will be key solutions in monetising the fields since these fields contain high carbon dioxide and will be the first CCS project in Peninsular Malaysia,” Shabudin added.
Petronas believes the BIGST cluster will also be the catalyst that is expected to spur the development of other high contaminant fields in Peninsular Malaysia which was not possible prior to this, due to the lack of complete CO2 handling infrastructure.
“PCSB is expected to bring to the table its capability in developing CCS projects building on its recent experience on Kasawari CCS, that was sanctioned recently. Petronas would move closer towards its aspiration of achieving net zero carbon emissions (NZCE) by 2050 through these carbon reduction solutions,” he added.
