PETRONAS awards PSC to Vestigo Petroleum for Sabah’s offshore fields

PETRONAS, through its Malaysia Petroleum Management (MPM) division, has awarded a significant Production Sharing Contract (PSC) to Vestigo Petroleum Sdn Bhd for the development of the NBE Cluster, consisting of the Nosong, Bongawan North, and Epidot fields, located off the coast of Sabah. This PSC, the first of its kind under the Malaysia Bid Round Plus (MBR+) initiative, underscores a pivotal moment in the exploitation of these predominantly gas discovery clusters.

The agreement, which was formalized during the Sabah Oil and Gas Conference and Exhibition, is witnessed by Sabah’s Minister of Finance, Datuk Seri Panglima Masidi Manjun, symbolizing a significant commitment to the region’s energy resources. PETRONAS was represented by MPM Senior Vice President Datuk Ir. Bacho Pilong, and Vestigo by CEO Khairul Azhar Abu Bakar.

Datuk Seri Panglima Masidi expressed his congratulations to Vestigo, acknowledging the importance of such partnerships in leveraging local capabilities and fostering the growth of Oil & Gas Services and Equipment (OGSE) companies within Sabah. “We welcome capable operators like Vestigo to explore, invest, and develop Sabah’s oil and gas resources. At the same time, we are committed to fostering the growth of local OGSE companies and encourage collaborations that increase participation of qualified Sabahan companies in the industry,” he stated.

The awarded PSC is part of PETRONAS’s strategy to utilize and assess information made available through the PETRONAS myPROdata platform. It is also a part of the broader MBR+ cycle, introduced in October 2023, designed to provide additional avenues for investors to explore and acquire Discovered Resource Opportunities (DRO) and Late Life Assets (LLA) in Malaysia.

Datuk Ir. Bacho Pilong highlighted the significance of this award as a successful outcome of the MBR+ cycle, which aims to align with Malaysia’s goals for low-carbon and low-emission operations in the upstream oil and gas sector. “We continue to collaborate with the Sabah state government in steering a vibrant investment climate and ecosystem, which is essential in supporting Sabah local communities and players to further progress in this industry,” he added.

The strategic award of the PSC to Vestigo represents a crucial step in maximizing the potential of Sabah’s offshore resources. This initiative not only enhances the local economy by promoting the involvement of Sabahan companies but also aligns with global trends towards more sustainable and efficient energy production methods.