Petronas discontinues second RSC for the year

PETALING JAYA: Petroliam Nasional Bhd (Petronas) and its contractors Sapura Kencana Petroleum Bhd's subsidiaries Kencana Energy Sdn Bhd and Sapura Energy Ventures Sdn Bhd, and partner Petrofac Energy Developments Sdn Bhd, have mutually agreed to terminate the Berantai risk service contract (RSC), making it the second such action taken by the oil major this year.
In February, Petronas announced the cessation of the Balai Cluster fields offshore Bintulu, Sarawak operated by BC Petroleum Sdn Bhd, a company it jointly owned with Roc Oil Malaysia (Holdings) Sdn Bhd and Petronas Carigali Sdn Bhd.
Petronas said in a statement earlier the RSC's cessation will allow it to minimise the project's long-term value erosion and optimise the development and production activities in Malaysia, in line with its efforts to reduce costs and increase the efficiency of its operations.
The cessation of the RSC will be effective on Sept 30, 2016, and Petronas will reimburse the balance of outstanding capital and operational expenditures to the contractors over the following 12 months. As part of the arrangement, the ownership of Berantai Floating Production Storage Offloading vessel (FPSO) will be transferred to Petronas.
The Berantai RSC was the first RSC awarded by Petronas to Petrofac Energy Developments Sdn Bhd and its two local partners on Jan 31, 2011.