KUALA LUMPUR (Oct 28): Petroliam Nasional Bhd (Petronas) has signed two agreements with Petroleum Sarawak Bhd (Petros) on collaboration opportunities under the Sarawak Gas Roadmap to grow the state’s energy industry.

In a statement on Friday (Oct 28), the national oil and gas company said it had signed a heads of agreement (HOA) to expand the usage of natural gas within Sarawak to supply 60 MMSCFD (million standard cubic feet per day) of gas by 2026 to the proposed 400MW combined cycle gas turbine power station in Miri.

In addition to the HOA, Petronas and Petros will also work closely to establish carbon capture and storage (CCS) as a new business opportunity through a road map study for a CCS ecosystem, in positioning Sarawak as a regional sequestration hub.

Both parties will also seek to foster Sarawak companies’ participation, and local talent development in this new area.

To formalise this, a joint collaboration agreement was inked to facilitate the stewardship of CCS development and its operationalisation in Sarawak, as the industry transitions towards a low-carbon future.

“As a long-term partner of Sarawak, Petronas continues to play its role in developing a sustainable and progressive oil and gas industry in the energy transition landscape, through world-class projects such as the Kasawari gas development, which includes the application of carbon sequestration technologies,” said Petronas executive vice-president and chief executive officer of upstream Datuk Adif Zulkifli in the statement.

Petronas Carigali Sdn Bhd, a wholly-owned subsidiary of Petronas, also entered into a farm-out agreement with Petroleum Sarawak Exploration and Production Sdn Bhd (PSEP), a wholly-owned subsidiary of Petros, for the sale of Petronas Carigali’s 45% non-operating participating interest in the Block SK407 production sharing contract (PSC).

This is PSEP’s third time participating in upstream producing assets, after successful farm-ins into the MLNG Satu PSC and Kumang Cluster PSC in 2021.