(Sharecast News) - Oil and gas producer EnQuest has signed an agreement with Malaysian state-owned energy company Petronas, it announced on Tuesday, on behalf of the PM8 Extension production sharing contract (PSC) parties.
The London-listed firm said the agreement aimed to provide additional gas supply from the Seligi field to support the gas demand in peninsular Malaysia.
That, it explained, would be achieved through the use of the existing PM8E PSC facilities until the end of 2025.
As a result of this agreement, EnQuest said its gas production was expected to increase by around 25 million standard cubic feet per day, with a gross increase of 50 million standard cubic feet per day initially from associated gas.
EnQuest and Petronas would also assess the potential for drilling additional gas-producing wells over time.
"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," said chief executive officer Amjad Bseisu.
At 0824 BST, shares in EnQuest were down 0.03% at 15.98p.
Reporting by Josh White for Sharecast.com.
Enquest (ENQ)