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Petrofac Begins Production at Cendor Field Offshore Malaysia

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Cendor 1
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Petrofac has commenced production from the Cendor field in Block PM304 offshore Malaysia. Petrofac Malaysia, a wholly owned subsidiary of Petrofac Resources, is operator of the field with Petronas Carigali, Kuwait Foreign Petroleum Exploration Company (Kufpec) and PetroVietnam Investment Development Company (PIDC) as its development partners. Petrofac has a 30% interest in the production sharing contract for the field which is estimated to have proven reserves of 24.6 million barrels of oil.

Working alongside its partners, Petrofac has developed an innovative solution for the development of the field, which sees the first mobile offshore production unit (MOPU) in Malaysian waters connected to a spread moored floating storage and offloading unit (FSO) via a flexible submarine pipeline. Petrofac is using its operations services capability to deliver efficient operational management of the field. Production from the field commenced on September 23, 2006 and has averaged 3,500 barrels of oil per day from one of the expected seven first phase development wells, five of which have now been drilled. The wells are being brought on stream selectively to allow testing of the reservoir over the coming weeks.

Richard Hall, vice president of operations and development for the Resources division and general manager of Petrofac Malaysia for the engineering and development phase, commented: "The commencement of production is a major achievement based on vision, perseverance and hard work. I am very proud of our team here in Malaysia and thank them for their dedication and efforts. We have been able to take the Cendor project from farm- in to full production in less than two years in a tight market, within budget and ahead of the prescribed timetable. I would also like to thank our partners for their support, particularly Petronas Carigali with whom we have worked especially closely."

Amjad Bseisu, chief executive of Petrofac's Resources division, said: "Production start-up from Cendor is a milestone for Petrofac. This extends Petrofac's business model for developing smaller fields with innovative solutions to new basins. Production from Cendor also establishes southeast Asia as a new core area for Petrofac and we look forward to the field's further development phases and to future collaboration with Petronas."

Ayman Asfari, Petrofac's Group chief executive, said: "This is a good example of how our integrated business model creates added value, with our engineering design capability providing the facilities solution and our operations services capability assisting with the operational management of the field. This is a core asset for Petrofac and offers the prospect to grow our southeast Asia business."

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