Velesto bags $90m jackup deal in Indonesia

ENB Pub Note: I have added the domestic oil and gas production information for Malaysia and the update from AsiaOffshore on the Velesto Energy new contract is below.

• Oil Production:
  • Malaysia produced approximately 565,000 barrels per day (b/d) of crude oil and condensate in 2023, a slight increase from 561,000 b/d in 2022.
  • Estimates for 2024 suggest a marginal increase, with production reaching around 679,250 b/d, according to market analyses.
  • The U.S. Energy Information Administration (EIA) notes that Malaysia’s petroleum and other liquids production was around 597,000 b/d in 2023, with 2024 production likely remaining close to this level due to maturing fields and limited new developments.
  • Petronas reported total oil and gas production (including overseas) at 1.7 million barrels of oil equivalent per day (mmboe/d) in 2024, with domestic production estimated at around 660,000 b/d for liquids (crude oil and condensate).
• Natural Gas Production:
  • Malaysia’s natural gas production in 2023 was approximately 2.47 trillion cubic feet (Tcf), equivalent to about 6.77 billion cubic feet per day (Bcf/d), a slight decrease from 2022 due to operational challenges.
  • For 2024, production is estimated to remain stable at around 7.0 Bcf/d, supported by new fields like the Jerun gas field in Sarawak, which began production in 2024 with an expected peak of 550 million cubic feet per day (MMcf/d) by 2030.
  • About 60–70% of Malaysia’s total production is natural gas, with a focus on LNG exports and domestic consumption.
• Total Oil and Gas Production:
  • Petronas estimated total domestic oil and gas production at 1.7 mmboe/d in 2024, with natural gas constituting the majority.
  • The upstream sector, led by Petronas, produced around 677,800 b/d of oil equivalent, including both oil and gas, with significant contributions from offshore fields in Sarawak and Sabah.

• Oil Production:
  • Malaysia’s crude oil and condensate production is expected to decline in 2025 due to scheduled maintenance shutdowns in Peninsular Malaysia during the second half of the year.
  • Forecasts suggest a production range of 600,000–650,000 b/d, down from 2024 levels, with maturing fields and limited new projects contributing to the contraction.
  • The Malaysia Oil and Gas Market is projected to reach 688,890 b/d in 2025, reflecting a slight increase from 2024 but constrained by maintenance and demand factors.
• Natural Gas Production:
  • Natural gas production is projected to decline in 2025 due to planned shutdowns of two facilities in Sarawak for maintenance, keeping output below 2024 levels.
  • Estimates suggest production could range between 6.5–6.8 Bcf/d, down from 7.0 Bcf/d in 2024, despite new plants like the Timi project (expected to produce 300 MMcf/d at peak) coming online.
  • Moderating demand from major LNG importers (Japan, China, South Korea) may further impact production levels.
• Total Oil and Gas Production:
  • Petronas aims to sustain total oil and gas production at 2 mmboe/d between 2025 and 2027, up from 1.7 mmboe/d in 2024, through projects like the Kasawari gas development and redevelopment of fields such as Gumusut-Kakap and Seligi.
  • However, the government forecasts a contraction in the mining sector by 1% in 2025, compared to a 2.2% growth in 2024, due to lower oil and gas output.

• 2024: Malaysia’s oil and gas production remained relatively stable, supported by new field developments (e.g., Jerun) and Petronas’ upstream focus, despite challenges from maturing fields. The country produced around 660,000 b/d of oil and 7.0 Bcf/d of gas, with total output at 1.7 mmboe/d.
• 2025: Production is expected to decline due to maintenance shutdowns and softer global demand, particularly for LNG. Oil production may fall to 600,000–650,000 b/d, and gas production to 6.5–6.8 Bcf/d. Petronas’ target of 2 mmboe/d relies on successful execution of new projects, but short-term declines are likely.
• Context: Malaysia is the second-largest oil and gas producer in Southeast Asia and a major LNG exporter, with Petronas holding exclusive rights to exploration and production. The industry faces challenges from maturing fields, declining reserves, and a global shift toward renewables, prompting investments in projects like biorefineries and sustainable aviation fuel.

• The figures for 2025 are projections based on government reports, Petronas’ outlook, and market analyses, as comprehensive 2025 data is not yet available.
• Variations in estimates arise from differences in reporting (e.g., inclusion of condensate, domestic vs. total production) and assumptions about project timelines.
• For precise 2025 data, consult future EIA reports, Petronas’ annual reports, or real-time data from sources like GlobalData or Kpler, which may require subscription access.