UK-based oil and gas extractor Enquest has announced an agreement with Malaysian energy conglomerate Petronas to increase the amount of gas it extracts from the Seligi field.
Seligi field is a Malaysian conventional oil and gas field initially founded by Malaysian state oil and gas firm Petronas. The project achieved peak production in 1995but has produced consistently with multiple expansions since then.
The increased production will grant the firm an additional 25 million square cubic feet per day of extraction. The deal will run until 2025, with provisions to assess the viability of drilling further wells in the future.
Amjad Bseisu, CEO of Enquest, said: “I am pleased with the progress on this agreement enabling Enquest to supply gas through existing infrastructure, and look forward to continuing to work with our valued partner Petronas on unlocking further potential supplies.”
Enquest has operated the Seligi field since 2014, when it bought a 50% stake in the oil and gas project to share with Petronas. Analyst company GlobalData has estimated that around 97% of the field’s oil reserves have been extracted, with the field no longer economically viable after 2026.
In 2022 Enquest increased its production in Malaysia by nearly 1,500 barrels of oil-equivalent per day compared to 2021.
Enquest in Asia
It is part of an Enquest’s effort to increase its presence in Asia at the expense of its UK operations. Bseisu previously criticised the UK government’s “windfall tax” increase as “short-termism”. He cited the 75% tax on windfall earnings as a reason why the firm was increasingly looking eastward. In February, Enquest deferred drilling at its Kraken oil project for the same reasons.
Bseisu said of this: “The UK is particularly unstable fiscally, which I think affects the long-term views on investments. You can do short-cycle investments, but long-cycle investments are very difficult.”
In 2023, Enquest’s north sea operations have reported suppressed production as the result of strikes in April.