EnQuest PLC and Seascape Energy Asia PLC on Monday announced they have each individually been awarded a small field asset production sharing contract over the DEWA complex cluster in Malaysia.
EnQuest is an oil and gas company with operations in the UK and Malaysia, and holds the largest interest in the DEWA cluster at 42%. Seascape Energy Asia is a Southeast Asia-focused exploration and production company that holds a 28% participating interest in the cluster.
The contract is also in partnership with Petroleum Sarawak Exploration & Production Sdn Bhd, which holds a 30% interest, and Longboat Energy (DEWA) Ltd. It was made under the Malaysia Bid Round Plus by Petroliam Nasional Berhad, through Malaysia Petroleum Management
The DEWA complex cluster is ‘in a proven hydrocarbon area containing undeveloped discoveries, providing potential low-cost development options to provide gas supply into the Sarawak gas system’, EnQuest explained. It is comprised of twelve discovered fields in an area around 50 kilometres off the coast of Sarawak, offshore Malaysia, in water depths of 40 to 50 metres.
Seascape Chair James Menzies said: ‘This award supports our recent decision to strategically pivot the business to focus on Southeast Asia. It builds on our existing position in Malaysia and in one step provides Seascape with an immediate portfolio of gas discoveries with over 500 billion cubic feet of in-place resources from four main fields with considerable upside.
‘DEWA represents an opportunity the company, together with its partners, EnQuest and Petros, to pursue a low-cost, near-term development located close to existing infrastructure. While the financial commitment and costs over this initial planning phase are expected to be minimal, the prize is very material for Seascape. The award perfectly illustrates how an independent exploration & production company can create and create value in this environment.’
Shares in EnQuest were up 2.5% at 10.64 pence each in London on Monday afternoon.
Shares in Seascape Energy Asia were up 9.5% at 15.05p each.
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