Petrofac Acquires Stake in Cendor Field Offshore Malaysia

Petrofac Resources has acquired a 40.5% interest in the Cendor field in Block PM304 offshore Peninsular Malaysia from Amerada Hess.

The acquisition will effectively make Petrofac the new operator of the field. Other partners in the field are PETRONAS Carigali (30%), Kuwait Foreign Petroleum Exploration Company (25%) and PetroVietnam Investment Development Company (4.5%).

The Cendor field is located in the northeast corner of Block PM304 in about 70 metres of water with principal producing horizons in the H Group of Middle Miocene sands. Nearest infrastructures include the Dulang oil field FSO to the north, Resak gas facilities to the northwest and Tapis oil facilities in the east. Previous Production Sharing Contractors drilled 8 wells on the structure, before Amerada Hess drilled 2 more wells on seismic amplitude responses that tested oil at commercial rates. Base reserves are 20 million barrels of oil with significant upside potential.

The field will be developed in two phases with significant operational co-operation between Petrofac and PETRONAS Carigali, the operating arm of PETRONAS.

Rory Edwards, Petrofac Resources' Vice-President of Business Development and Richard Hall, Petrofac Resources' Vice-President, Operations and Development, will continue to lead the project after completion.

Commenting on the development, Richard Hall said: "Cendor Phase 1 is a proven undeveloped field that gives us a great opportunity to export and build on the skills and experience of Petrofac Facilities Management and Petrofac Engineering in conjunction with PETRONAS Carigali."

Amjad Bseisu, Chief Executive of Petrofac Resources, said: "We are excited about working jointly with PETRONAS Carigali on this development. Malaysia has great potential and is therefore an ideal country to deploy Petrofac's expertise."

First oil from the field is scheduled for late 2006 / early 2007.