Post-PSCs Business Development Opportunities

Abstract

Some of the early Malaysian Production Sharing Contracts (PS Cs), in particular those signed in the mid 70s have expired or are expiring. These PSCs have either been replaced or are in the process of being replaced with new arrangements. While some of the PSCs ceased operations or expired as per their natural terms, other expiring PSC's operations were modified upon mutual agreements between the PSC Contractors and PETRONAS to allow both parties to enter into more dynamic and exciting new arrangements on a long term basis. This paper will attempt to share PETRONA'S broad experience and general approach in addressing the expiring PSCs and giving life's to these PSCs after they have expired. The paper highlights among others how PETRONAS goes about balancing between issues such as diverse commercial perspectives/forecasts and expectations; long term relationships and commitments; win-win new arrangements while enforcing national requirements. P. 203