Ping Petroleum has officially entered into a late-life asset production-sharing contract (PSC) with Petronas, signifying a significant step in the development of the Abu Cluster, an offshore asset in Malaysia. The cluster encompasses three fields, namely Abu, Abu Kecil, and Abu SW Upthrown, with a combined estimated reserve of 5 million stock tank barrels.

The agreement, brokered by Ping Managing Director Zainal Abidin Abdul Jalil and Petronas Senior Vice President Mohamed Firouz Asnan, aims to facilitate the optimization of production recovery from the Abu field. As stated by the Petronas executive, this collaboration is expected to yield equitable returns for both the host authority and the investor, with a particular focus on funding the abandonment requirements of existing facilities.

Having reached the PSC under the 2022 Malaysia bid round, Ping emphasized the 10-year duration of the contract, which encompasses the offshore area located approximately 250 km east of the Malaysian peninsular. Executive Chairman of Ping's parent company DNeX, Tan Sri Syed Zainal Abidin Syed Mohamed Tahir, expressed enthusiasm for the awarded contract, emphasizing the commitment to bolstering Malaysia's domestic energy supply and expanding the company's strategic production assets in jurisdictions with transparent fiscal policies.

Syed Zainal Abidin also highlighted the company's dedication to operating cost-effective production assets and diversifying its revenue streams across multiple geographical locations.