ExxonMobil Begins Production from 7th Tapis Field Satellite

ExxonMobil Exploration and Production Malaysia Inc. (EMEPMI), a subsidiary of ExxonMobil Corporation, announced the commencement of oil production from the Tapis F satellite platform, the seventh facility in the Tapis field located 200 km offshore Peninsular Malaysia.

With Tapis F on-line, ExxonMobil as operator, and co-venturer PETRONAS Carigali Sdn Bhd, are able to maximize production from a previously unreachable section of the reservoir and extend the field's producing life.

EMEPMI Chairman Rob Fisher said, "Tapis was one of the first fields ExxonMobil developed in the Malay basin. Since then significant efforts have been made to maintain the field's production levels and to generate new opportunities using the latest technology and global best practices," said Fisher.

"This project is an example of our commitment to continuously improve the management and development of our existing oil and gas reservoirs by utilizing the company's technological expertise and leveraging experience gained from our successful Satellite Development Projects," noted Fisher. "Most importantly, it allows us to increase recovery from existing reservoirs of oil and gas and to extend the economic life of reserves."

The Tapis F project management team, which also was responsible for the previously announced Bintang A and B projects, was able to achieve valuable economies of scale by combining the fabrication and installation of all three platforms. Construction of Tapis F was implemented on a fast track schedule with fabrication completed in eight months.

Tapis F, designed and constructed entirely in Malaysia, has a capacity for 12 wells. Production will flow via 4.5 km of new pipeline to Tapis A for processing and then to shore via existing pipelines. The three-legged platform will produce approximately eight million barrels of oil (mbo). Crude oil production is expected to peak at around six thousand barrels per day (kbd).

Installation of the platform was completed in the third quarter of 2003 and drilling is being carried out using a jack-up rig.

The Tapis F project, including the host tie-ins at Tapis A and Tapis B platforms, required more than 600,000 work hours to complete and was executed without a single lost-time injury to workers. Total project development cost is estimated at RM 91 million (US$24 million), excluding drilling costs. A total of six wells are planned to be drilled this year.

After the discovery of the Tapis field in 1969, the first platform, Tapis A, was installed in 1978 and reached peak production of 38 kbd in 1980. Tapis B was installed in 1979. This was followed by Tapis C in 1980, and Tapis D and E in 1982 and 1999, respectively. A Pumping Platform is connected by bridge to the Tapis D platform. Peak production of 81 kbd for the total Tapis field was achieved in 1980. The field currently produces around 28 kbd.

The Tapis Pumping Platform is the hub for offshore oil production from 10 ExxonMobil-operated and six PETRONAS Carigali-operated oil fields. This hub is commonly called the Tapis Oil Production System, which produces the Malaysian benchmark crude, Tapis Blend. The Tapis System currently produces approximately 360 kbd, more than half of the country's total oil production.

EMEPMI, a subsidiary of Exxon Mobil Corporation, is the largest oil producer in Malaysia and the largest supplier of gas to Peninsular Malaysia, producing over 250 thousand barrels of oil (kbd) and in excess of one billion cubic feet of gas (bcfd) per day. Tapis F is being developed under the 1995 Production Sharing Contract by EMEPMI on behalf of its joint venture with PETRONAS Carigali Sdn Bhd (PCSB), a subsidiary of Malaysian national oil company, PETRONAS. EMEPMI has a working interest of 78 percent in the field, with the remaining interest held by PCSB.

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