EnQuest PLC, through its subsidiary EQ Petroleum Production Malaysia Ltd, inked an agreement to acquire ExxonMobil Exploration and Production Malaysia Inc.'s stakes in the Seligi oil field and the PM8 PSC (Production Sharing Contrac) -- both located offshore Peninsular Malaysia for $67 million.
The acquisition is subject to the approval of Malaysia's national oil company Petroliam Nasional Berhad (Petronas) and satisfaction of certain conditions precedent.
"This acquisition is another step in the execution of the Company's strategy to extend its international footprint in Malaysia. Following completion, the acquisition will contribute approximately 5,000 barrels of oil equivalent per day (boepd) of net production and 11.0 million barrels of oil equivalent (MMboe) of net 2P reserves to EnQuest," the company said in a press release Friday.
When the transaction is completed, EnQuest will take over as operator from ExxonMobil. The company and Petronas' upstream unit Petronas Carigali Sdn Bhd will each hold a 50 percent participating interest in the two projects. The deal required EnQuest to enter into an agreement with Petronas to continue development and production of petroleum resources from the PM8 PSC and Seligi oil field until 2033.
"I am delighted to announce this acquisition which builds on our core skill of enhancing value from maturing fields. This acquisition follows from our recent partnership with Petronas on the Tanjong Baram field and is a significant expansion to our Malaysian operation. I look forward to deepening our relationship with Petronas and adding further opportunities in Malaysia," EnQuest's CEO Amjad Bseisu said in the press release.
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