ExxonMobil Inks 25-Year PSC with Petronas
ExxonMobil Exploration and Production Malaysia Inc. will continue working to maintain sustainable energy supplies in Malaysia for at least the next 25 years, the company announced March 26.
Petroliam Nasional Berhad (Petronas), the petroleum company of the Malaysian government, renewed its team efforts with ExxonMobil March 26 for the production-sharing operations of several offshore Malaysian oil fields.
In a statement issued by Petronas, it is declared that the combined efforts of the companies would include a $2.1 billion investment in the further development of the offshore fields.
ExxonMobil Malaysia Chairman Liam Mallon, present at the signing party, told reporters, "We are proud of the partnership and collaboration that we have with Petronas that have allowed us to deliver the energy supplies required by Malaysia in the past and now for many years to come.
"This is an exciting opportunity for the Malaysian workforce and will enable the latest technology applications, capability and collaboration to ensure efficient development of the substantial remaining resources offshore Peninsula Malaysia."
The U.S. Energy Information Administration (EIA) lists Malaysia as a "significant Southeast Asian producer of oil and natural gas," thought the agency has predicted that oil production will continue to decline over the next two years. January 2007 estimates for oil reserves cleared at 3 billion barrels, which is down from 4.6 billion barrels – a "peak" reserve estimate tabulated in 1996.
EIA has forecasted a 13% drop in 2008 oil production from 2006 levels, or 693,000 bbl/d. However, the startup construction in February 2007 of Malaysia's Sabah Oil and Gas Terminal (SOGT) indicates that "new deepwater oil and natural gas production slated to come onstream over the next several years in Sabah will be destined for export markets."
Earlier in March 2007, Punj Lloyd was awarded the Sabah Sarawak Gas Pipeline Project by Petronas Carigali, a subsidiary of Petronas. The largest pipeline project in Malaysia, the Sabah Sarawak will run 512 kilometers from the SOGT to the Petronas Liquefied Natural Gas Complex in Bintulu, Sarawak. Anticipated completion of the $500 million pipeline project is 2011. The current production-sharing contract between Petronas and ExxonMobil ends in 2012.
"The two partners have been involved in the exploration, development and production activities in the seven fields under a production-sharing contract signed in 1995, which is due to expire in March 2012," Petronas said in a statement.
For its part, the ExxonMobil subsidiary has contributed more than $15 billion over 40 years to operations in Malaysia. There are 43 platforms operated by ExxonMobil Malaysia in 17 fields. Gross production estimates for oil are 150,00 bbl/d and approximately 1.2 Bcf/d, according to ExxonMobil.
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