KUALA LUMPUR (Bernama) -- Petroliam Nasional Bhd (Petronas) has awarded a production sharing contract (PSC) for Block PM524 to POSCO International E&P Malaysia Sdn Bhd and Petronas Carigali Sdn Bhd (PCSB).

       POSCO International, a wholly owned subsidiary of South Korean POSCO International Corporation, is the operator with 80% participating interest, while PCSB, Petronas’ wholly-owned subsidiary, holds the remaining 20%.

       Block PM524 is located in the prolific area of the Malay Basin, surrounded by several key producing fields including Tangga Barat that supply gas to the Peninsular Malaysia market.

       "We welcome POSCO International to Malaysia’s upstream oil and gas industry, and as a new player in Malaysia, they bring their experiences of operating gas fields in other parts of this region, including the technological development of carbon capture and storage," senior vice-president of Malaysia petroleum management Mohamed Firouz Asnan said in a statement.

       He said the award further reinforces Malaysia’s attractiveness as a destination for companies seeking to grow their energy portfolio and thrive in the energy transition.

       "Under our right asset, right player strategy, supported by a progressive fiscal regime, we hope to fully maximise the long-term value of the hydrocarbon resources in Malaysia, especially in Peninsular Malaysia where the demand is expected to increase,” he added.