KUALA LUMPUR (Nov 29): Petroliam Nasional Bhd's (Petronas) subsidiary Petronas Carigali Sdn Bhd (PCSB) has reached its final investment decision (FID) for the development of its Kasawari CO2 sequestration (CCS) project offshore Sarawak.

The FID was approved on Oct 20, followed by the award of the engineering, procurement, construction, installation, and commissioning contract for the project to Malaysia Marine and Heavy Engineering Sdn Bhd on Nov 3.

"The CCS project, located in Block SK316 about 200km off Bintulu, is expected to reduce the carbon dioxide volume emitted via flaring by 3.3 MTCO2e (metric tons of carbon dioxide equivalent) annually, making it one of the largest offshore CCS projects in the world," said Petronas in a statement.

Meanwhile, PCSB chief executive officer Hasliza Othman said the FID marks a crucial stage in the progress of CCS solutions. 

"This project is expected to become a catalyst in achieving end-to-end CCS capability development within Petronas, and the first step in unlocking Malaysia’s potential as a regional CCS solutions hub,” said Hasliza.

The project aspires to pave the way forward for future decarbonisation plans for Petronas and Malaysia, as well as to support Petronas’ progress towards achieving its target of net zero carbon emissions by 2050.