KUALA LUMPUR (Jan 19): Reservoir Link Energy Bhd (KL:RL) has secured a contract from Hibiscus Oil & Gas Malaysia Ltd to provide third-party subsurface review and technical assurance services for the PM3 CAA carbon capture and storage (CCS) project.

In a statement on Monday, the energy-related services provider said the contract was awarded to its 60%-owned subsidiary, Reservoir Link Solutions Sdn Bhd, and is effective for a period of two years from the date of award.

Under the contract, Reservoir Link will conduct an independent review of the CCS study, covering subsurface workflows and methodologies, data inputs and assumptions, static and dynamic modelling, as well as technical analysis and interpretation.

The scope also includes providing recommendations and proposing practical, cost-effective measures to address potential technical gaps or risks.

The value of the contract was not disclosed.

Reservoir Link said the contract marks its first entry into the CCS segment, expanding its service offerings beyond its traditional oil and gas activities. CCS involves the capture, transportation and permanent storage of carbon dioxide underground as part of its broader efforts to reduce emissions.

“CCS is set to become a significant market in the years ahead, and by securing this project, Reservoir Link is well-positioned to capture future opportunities and create long-term value,” Reservoir Link executive deputy chairman Thien Chiet Chai said in the statement.

Hibiscus Oil & Gas Malaysia Ltd is an indirect wholly-owned subsidiary of Hibiscus Petroleum Bhd (KL:HIBISCS). According to Hibiscus Petroleum’s website, the company previously drilled Malaysia’s longest well at the Bunga Orkid field in the northern area of the PM3 CAA in 2023.

Shares of Reservoir Link were unchanged at 21.5 sen on Monday’s closing bell, valuing the group at RM77.9 million.