Rex International, together with its Malaysia partner, Duta Marine, has been awarded two production sharing contracts (PSCs) by Petroliam Nasional Berhad (Petronas), Malaysia’s national oil corporation on Aug 30.
The contracts are related to the development and production of the Rhu-Ara and the Diwangsa clusters located offshore of the Malaysian Peninsula.
The Rhu-Ara cluster has two discovered oil fields and the Diwangsa cluster has four discovered oil fields.
The clusters are awarded following the Malaysia bid round 2020.
See also: Crude oil rally drives oil and gas and offshore plays temporarily higher
The new PSC terms under the small field assets include an up-to-two year pre-development phase followed by a two-year development and a ten-year production period.
The participating interests of Rex and Duta Marine are 95% and 5% respectively, with Rex being the operator of the PSCs.
“Rex is very pleased to have been awarded two PSCs in Malaysia and looks forward to working with Petronas to rapidly and cos-teffectively develop the resources contained within the clusters,” says Dan Broström, executive chairman of Rex International Holding.
“Over the next two years, our focus will be on the pre-development phase of the clusters. The anticipated production will further grow the group’s production and reserves base. We will leverage on our experience in Oman, where we have proven to be an effective operator, to make these assets a success,” he adds.
Shares in Rex closed 0.2 cent higher or 1.05% up at 19.3 cents on Aug 30.
Photo: Bloomberg
