PETRONAS and China National Petroleum Corporation (CNPC) signed a Memorandum of Understanding (MoU) at the CNPC International Cooperation Forum, a key event at the 7th China International Import Expo (CIIE). Coinciding with the 50th anniversary of Malaysia-China diplomatic relations, this collaboration not only serves as a testament to the enduring friendship between the two nations but also represents a significant milestone as both sides join forces to propel the energy industry towards high-quality, sustainable development.

Tan Sri Tengku Muhammad Taufik, President and Group CEO of PETRONAS, and Dai Houliang, Chairman of CNPC, jointly attended and witnessed the signing ceremony. The MoU was signed by Hazli Sham Kassim, Vice President of Development of Upstream PETRONAS and He Wenyuan, General Manager of China National Oil and Gas Exploration and Development Co., Ltd (CNODC).

The MoU for strategic partnership will strengthen collaboration, among others, in the upstream exploration and production of oil and gas internationally, as well as the liquefied natural gas (LNG) value chain. The MoU will also focus on innovative ventures in cutting-edge fields such as specialty chemicals, renewable energy, green hydrogen technology, and carbon capture utilisation and storage (CCS). Additionally, the two parties aim to establish an open communication platform to facilitate the exchange of knowledge, insights, and best practices, driving energy transition and taking more substantial steps towards sustainable energy development in the region.

Over the years, PETRONAS has provided China with a stable energy supply, including liquefied natural gas, petrochemical products, crude oil, petroleum products, and lubricants. By strengthening its cooperation with Chinese energy companies, PETRONAS has supported the transformation and upgrading of China’s energy sector, contributing to the nation’s economic prosperity and development.

President and Group CEO of PETRONAS delivered a keynote address at the CNPC International Cooperation Forum, on the sidelines of CIIE. The CIIE aims to promote economic globalisation that is open, inclusive, balanced, and beneficial for all—principles that align closely with PETRONAS’ global strategy.

Corcel Increases Major Stakes in Gas Production Fields Onshore Brazil

Corcel, the pan Angola-Brazil focused energy company has announced that its wholly-owned subsidiary, CRCL Brazil Ltd, has entered into a binding option agreement with Petroborn Óleo e Gás S.A. to acquire a 20% interest in the IRAI gas field on a Right-of-First Refusal (ROFR) over the remaining 80%, and another ROFR for 100% of the adjacent TUC-T-172 exploration block (IRAI Opportunity), located in the state of Bahia, onshore Brazil.

“The IRAI Field and TUC-T-172 Option marks an exciting entry into Brazil, demonstrating our ability to secure value-enhancing deals in the Brazilian onshore sector to complement our Angola exploration strategy. This positions us perfectly to capitalise on the abundant opportunities that have risen from the secondary market, resulting from the Petrobras onshore divestments, paving the way for an accelerated acquisition journey of more high-potential producing onshore oil and gas fields in Brazil,” Geraldine Geraldo, Corcel’s Chief Commercial & Strategy Officer, commented.

Transaction Overview:

The Option requires the Company to provide a loan of approximately US$550K to Petroborn for two workovers in Q1 2025. If the Option is not exercised, the loan will be repaid in full.

Should the Company decide to exercise the Option, upon doing so, the Company will advance a capped US$2.95MM for additional development activities over a two-year period, in two tranches. The first tranche of US$850K will fund one development well in the first half of 2025. A follow-on funding H1 2026 of US$2.1MM will support further development through mid-2026.

The Company will be entitled to cashflow distributions upon funding the first tranche, expected Q1 2025, with a temporary additional 10% interest in cashflows to accelerate repayment of the funding. This cashflow and revenue generation from the sale of the gas will create the possibility for providing the investment through debt or project financing at the asset level, as well as potential in-kind investment through the recently announced Conterp Collaboration Agreement, thus minimising dilution to shareholders.

Petroborn Asset Overview:

The IRAI gas field is located in the Tucano Sul Basin, about 110km NW of Salvador. IRAI is particularly attractive due to the shallow nature of the gas reservoirs, with producing gas zones ranging in depth from 220-825m across the field area. This, combined with the relatively high gas production rates seen in the field, with the EI-3 well peaking at >40,000m3/day (250 BOEPD) of gas, provides the Company with a unique opportunity to materially increase production and revenue generation at low rates of expenditure. Gas reservoirs at IRAI are of good quality, with an average of 13m of net pay and 23%

The adjacent TUC-T-172 exploration block offers additional upside potential. The structural trend that defines the IRAI Field has been mapped by the Company to continue into the TUC-T-172 block. The Company is evaluating the potential of drilling a continuation of the IRAI trend in TUC-T-172 in 2026. 

Corcel’s Strategy:

High-potential exploration well in block KON 16 (H2 2026), targeting post-salt and pre-salt prospects, following 2D seismic campaign in 2025

High-potential exploration wells in blocks KON 11 and KON 12 (H2 2026), targeting post-salt prospects, following 2D seismic campaign in 2025

Reactivation of Tobias (block KON 11) and Galinda oil (block KON 12); Tobias Field re-activation in progress with ongoing engineering work on TO-13 and TO-14 wells 

Progressive low-cost strategic acquisition of producing onshore oil and gas fields in Brazil. Onshore Brazil remains a significant hydrocarbon province, producing approximately 258M BOE per day.