Sources close to the action have revealed to the Malaysian media that the consortium will be “responsible for all costs and risks associated with exploration, development and production activities in exchange for a share of the total production.” The new PSC will work closely with Petronas subsidiary Petronas Carigali Sdn Bhd.

As previously reported by EnergyReview.net, the task of this second company will be to develop marginal oil and gas fields which are below the scope of Petronas. On the surface the state-owned giant is having no objection to the creation of the consortium, provided it does not contravene Malaysia’s Petroleum Development Act of 1972, which stipulates that oil and gas reserves and exploration and development within Malaysian territories falls to Petronas.

While no clear indicators exist as to who will finally be in the second consortium, industry speculation is leaning towards Jawala Corp Sdn Bhd, Crest Petroleum Bhd and Ranhill Bhd. The three have already identified 15 potential fields for prospecting and development.

No one was available for comment from any of the interested parties but Petronas did release a press release stating that it had “an open invitation for oil companies to develop ‘open exploration acreages’ of varying sizes and hydrocarbon productivity.