KUCHING (March 25): Borneo Oil Berhad’s indirect subsidiary, Borneo Oil (Sabah) Sdn Bhd (BOS), has obtained a vendor license from Petroliam Nasional Berhad (Petronas) as a Sabahan vendor.
In a bourse filing, BOS said it is at the same time expanding its operational base to offer a comprehensive range of services across the entire oil and gas value chain.
This expansion will be driven by strategic partnerships and collaborations with experienced Oil & Gas Services and Equipment (OGSE) technical service providers.
As part of this initiative, BOS signed a collaborative agreement with Intercontinental Strait Energy Technology Co Ltd (SETC) on March 20.
Under the agreement, both companies will jointly bid for projects involving consultancy, supervision, and service provision in areas such as drilling, completion, workover, stimulation, geology-related activities, and real-time drilling monitoring and optimisation.
The partnership also allows for other mutually agreed collaborative projects.
SETC is China’s largest drilling management consultancy, specialising in drilling optimisation, completion, fracturing supervision, reservoir management, and geological consultancy.
The company focuses on enhancing drilling efficiency, reducing time, and lowering costs through advanced optimisation techniques.
However, there is no percentage ratio applicable for this announcement as there is no consideration payable in the agreement.
Borneo Oil also that Malaysia currently produces around 660,000 barrels per day (bpd) of crude oil and 7.0 billion standard cubic feet per day (MMscf/d) of natural gas.
“Petronas plans to increase production to 2 million bpd in order to cope with the increasing domestic demand for oil. In December 2023, Malaysia’s domestically consumed approximately 929,556 barrels of oil per day.
It added that Sabah holds an estimated 11 trillion cubic feet (tcf) of gas and 1.5 billion barrels of oil, making up 12 per cent of Malaysia’s gas and 25 per cent of Malaysia’s oil reserves.
“Sabah is currently Malaysia’s top crude oil producer and OGSE contributes 20 per cent of Sabah’s GDP.
“Deep water projects are expected to bolster Malaysia’s oil production over the next decade, securing Sabah’s position as the leading oil-producing state,” it said.
-Agency
