KUALA LUMPUR (June 12): Petra Energy Bhd (KL:PENERGY) has secured a letter of award (LOA) from Petroliam Nasional Bhd (Petronas) in relation to the Banang Late Life Asset Production Sharing Contract (PSC) for a 10-year period until June 2034.

In a bourse filing on Wednesday, Petra Energy said the LOA was given to its unit Petra Energy Development Sdn Bhd (PEDSB), and that there was no fixed value stated in the letter of award.

It said the duration of the contract is for the period of 10 years from June 1, 2024, until June 1, 2034.

On the rationale for the award, the company said that PEDSB is in a good position to undertake this PSC.

“The recent award of the PSC represents PEDSB’s strategic progression into an upstream PSC Operator, reinforcing our commitment and growing capabilities within the field.

“The award of the Banang Late Life Asset PSC augments PEDBS’s operatorship portfolio.

“PEDSB is also the operator of Block SK433, onshore Miri, Sarawak, with Petroleum Sarawak (Petros), which the company was awarded in July 2021,” said Petra Energy.

The company said the award is expected to contribute positively to its earnings for the duration of the contract.

At midday break on Wednesday, Petra Energy gained 0.70% or one sen to RM1.44, with 254,500 shares traded.