Singapore-based Jadestone Energy Becomes the Latest Upstream Investor in Malaysia

August 2021

Jadestone Energy, a Singaporean independent oil and gas production company has acquired Malaysia-based SapuraOMV Upstream (PM) Inc’s assets in offshore Peninsular Malaysia. This move has made Jadestone Energy the latest upstream investor in the country.
According to Jadestone’s estimated production profile, the new assets will boost the Group’s 2P reserves by 34%, by adding 12.5 million barrels of oil equivalent of networking interest 2P reserves. The net consideration consisted of a net cash receipt of USD 9.2 million after adjustments. The transferred assets include the AAKBNLP, PM318, PM323, and PM329 production sharing contracts (PSC). PM323 and PM329 PSCs are operated by SapuraOMV PM.
SapuraOMV and Jadestone have agreed to a conditional sale and purchase agreement since April 2021, and obtained regulatory approval from Petronas on July 15, 2021. SapuraOMV PM is a subsidiary of SapuraOMV Upstream Sdn Bhd (SapuraOMV) while Jadestone is a London Stock Exchange Alternative Investment Market (AIM) listed company with operatorship experience in oil and gas fields across the Asia-Pacific region.
Petronas, Malaysia’s custodian of hydrocarbon resources stated that putting the right asset in the hands of the right player allows the sector to reach its full potential, resulting in maximization of returns by upstream investors. Jadestone’s asset life extension capabilities, along with its focus on improving production and cost optimization, will increase margins while extending the economic life of offshore assets. This will in turn contribute to the country’s total oil and gas production sustainability.
Petronas is organizing the annual Malaysia Bid Round (MBR) 2021 under the theme “Grow Your Energy Portfolio With Us” for investors to explore and monetize the full potential of Malaysia’s hydrocarbon resources. The MBR 2021 presents 13 new opportunities in Malaysia’s prolific basins as well as improved fiscal and non-fiscal terms in the PSC, such as Enhanced Profitability for shallow water blocks, Late Life Assets, and Small Field Assets, all of which are designed to meet the risk and reward of investments with the type of available assets.
(Sources: Jadestone Energy; New Straits Times; Business Today; Petronas)

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