KUALA LUMPUR: Dagang NeXchange Bhd (DNeX), through its subsidiary Ping Petroleum Sdn Bhd, has signed a new production sharing contract (PSC) with Petroliam Nasional Bhd (Petronas).

DNeX, in a statement today, said the the 14-year small field asset (SFA) cluster PSC provides Ping Petroleum the right to develop and produce petroleum and gas resources from three fields.

They are Bubu, Bunga Tasbih and Enau, all located about 250km from the east coast of Peninsular Malaysia.

The newly-signed cluster lies between 4km and 8km from Ping Petroleum's existing Abu cluster asset, providing significant synergy potential for an area development.

Ping Petroleum is the operator of this SFA Cluster PSC with a 90 per cent participating interest, while the remaining 10 per cent is held by Duta Marine Sdn Bhd

DNeX executive chairman Tan Sri Syed Zainal Abidin Syed Mohamed Tahir said the new PSC added to its existing assets namely Meranti, A and Abu clusters.

He said the achievement aligns with DNeX's objective to maximise revenue and diversify revenue streams, ensuring sustained growth and reinforcing its commitment to expanding its domestic portfolio.

"This contract fortifies our partnership and enhances Ping Petroleum's reputation in efficiently operating cost-effective producing assets," he added.

Besides Malaysia, DNeX also has oil and gas assets in the United Kingdom, including the producing Anasuria, and greenfield developments Avalon, Fyne, Pilot, Gleen and Hutton.

Looking ahead, DNeX said it is dedicated to expanding its portfolio in both the UK and Malaysia.

It noted that the initiative aims to create a strong development pipeline of development opportunities that will foster continued growth and secure its future in the energy sector.