Roc Oil Company Limited, announced Tuesday the farm in to a Production Sharing Contract (PSC) which includes three fields D35, D21 and J4 (Fields), located offshore Malaysia in water depths of approximately 164 feet (50 meters). The Fields are currently 100 percent owned and operated by Petronas Carigali and ROC has farmed into a 50 percent participating interest. The Fields are in production with a combined daily oil rate of approximately 10,000 barrels of oil per day (bopd) and gas sales of approximately 17 million standard cubic feet per day (MMscf/d) gross working interest. ROC’s economic interest (50 percent) of the 2P reserves from the Fields is 8.7 million barrels of oil equivalent (MMboe).
ROC’s CEO Alan Linn said: “The farm in is an excellent fit for our business and in line with our Asian development strategy, we expect the Fields to become cornerstone development assets within our growing regional portfolio. The Fields, particularly D35, contain material in place oil and gas volumes, and overall field recovery is expected to benefit significantly from the introduction of secondary and tertiary recovery technologies. The fields provide a portfolio of immediately bookable reserves plus contingent and prospective resources, which combined materially add to and extend the reserves and resources life of ROC.
The farm in agreement includes amendments to the existing PSC effective from Jan. 1 until December 2034. The PSC terms are designed for field redevelopment and enhanced oil recovery (EOR) to commercially encourage progressive incremental oil development over the full life of the PSC.
ROC’s experience in the redevelopment of the Zhao Dong fields, offshore Bohai Bay, China, is a good analogy for the redevelopment potential of the Fields. Since 2006, ROC has doubled the recoverable reserves in Zhao Dong with a combination of reservoir development optimization; facilities debottlenecking; capacity enhancement and the introduction of low cost drilling for production and injection wells designed to maximize recovery from compartmentalized reservoirs. Petronas Carigali and ROC will work together to unlock the Fields’ redevelopment potential and our track record has been key in bringing this significant redevelopment opportunity to ROC.”
Farm In Terms
Key terms in the agreements are summarised below:
About the Project
The Fields are located offshore Malaysia. D35 is the largest of the three fields with the longest production history and represents a significant brownfield redevelopment project. Within the D35 field boundary there is evidence of significant appraisal and near field exploration potential. J4 and D21 are satellite producing assets with similar potential and together they comprise the D35, J4 and D21 PSC.
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