KUALA LUMPUR (Oct 6): Dagang NeXchange Bhd (KL:DNEXis growing its presence in the energy sector, both upstream and downstream. It secured a one-year contract to maintain Petroliam Nasional Bhd (Petronas) stations and got approval for its unit, Ping Petroleum Sdn Bhd (PPSB), to move forward with its oilfield development plan in the Greater Abu area.
In the downstream sector, its subsidiary OGPC Sdn Bhd won a one-year contract from Petronas Dagangan Bhd (PDB) to maintain 50 Petronas stations in Klang Valley, starting July 1, 2025. Services include equipment maintenance, parts replacement, safety management, and AI-powered data solutions.
“Our contract with PDB perfectly aligns with DNeX’s strategic goal to boost revenue by expanding our footprint in the retail downstream oil-and-gas sector. At the same time, this opportunity enables DNeX Energy to leverage on DNeX Group’s capability and expertise to offer a suite of services through [the] POC model, before embarking on a full-fledged opportunity upon conclusion of the POC,” said DNeX group chief executive officer Faizal Sham Abu Mansor in a statement.
In the upstream sector, PPSB got approval from Petronas Malaysia Petroleum Management for its field development and abandonment plan (FDAP) of the Greater Abu area, covering five oilfields near the Abu Central Processing Platform, including the BETA cluster. This allows shared infrastructure and lowers costs.
The Greater Abu Development falls under Malaysia’s late-life asset and small field asset production sharing contracts, introduced by Petronas to encourage operators to develop and maintain production from brownfields and untapped marginal fields.
In addition to the development plan approval, PPSB also recently secured a crude oil offtake arrangement for its crude from both Anasuria and Abu with Petronas Trading Corporation (Petco).
“This arrangement and the FDAP approval for [the] BETA cluster highlight the trust and belief that Petronas has with Ping on its capacity and capability to execute the development of the Greater Abu Development area, and ensure sustainable delivery of crude to Petco. The Greater Abu Development will follow the successful playbook we implemented with the Anasuria Cluster in the UK North Sea, where we acquired a brownfield asset, improved its efficiency, and then brought in additional volumes through infill wells and tiebacks of nearby resources through effective resource allocation, by leveraging on existing infrastructure that are available.
“Our development plan and the offtake arrangement entered with Petco will also ensure sustainable cashflow coming into Ping, once the first oil is produced in the Abu field,” said Faizal.
Ping Petroleum operates through two arms, namely PPSB for its Malaysian operations, and Ping Petroleum UK PLC for its UK operations.
DNeX is currently focused on restarting the Abu Cluster, aiming to produce first oil by 2026 at about 3,000 barrels per day. The Abu and BETA projects are part of DNeX’s strategy to apply its proven low-cost model — used successfully in the UK’s Anasuria Cluster since 2016 — to new developments.
DNeX is a global technology company operating in three business divisions: semiconductor, energy, and information technology.
The stock closed at 26 sen on Monday, valuing the group at RM886.45 million.