The Satellite Fields Development Project, the first of its kind in Malaysia, represents a significant step forward in the development of small oil and gas fields. With smaller reserves, the new approach was the enabling factor in making production from these fields economic.
In announcing first production from the Seligi H platform, Mr. Terry Koonce, president, ExxonMobil Production Company, said that one of the keys to world-class performance is incorporating best practices and efficiencies to improve capacity in every field in ExxonMobil's vast portfolio.
"By simultaneously constructing these satellite platforms, sequentially installing them, and then using the same drilling rig, we are able to capitalize on time efficiencies and economies of scale. This type of development and approach to project management is part of our commitment to use the company's technological expertise to better manage and develop our existing oil and gas reservoirs. Most importantly, it allows us to gain the greatest possible recovery from smaller pockets of oil and gas, and so extend the economic life of existing reserves," said Koonce.
About 90 million barrels of oil from six fields will be produced from the five platforms. The total project development cost is estimated at US$240 million, inclusive of drilling costs. Peak production from all five platforms is expected to total 40,000 barrels of oil per day (kbd) and 50 million cubic feet of gas per day (mcfd).
The five platforms were successfully and safely constructed in Malaysia using a generic, minimum facility design, which maximized the use of existing facilities as much as possible. The project was implemented on a tight schedule, requiring the fabrication of the first platform to be completed in eight months, versus a normal time frame of about 12 months.
Seligi H was installed 150 miles offshore Terengganu in the South China Sea in August 2001 following construction in Malaysia with four other satellite platforms: Raya B, Lawang A, Serudon A and Irong Barat B. At its peak, Seligi H will produce 11 kbd of oil and 29 mcfd of gas. Seligi H is the eighth satellite platform to be connected to the central processing platform complex, Seligi A.
After completion of ten wells on Seligi H, the jackup drilling rig will move progressively to the other platforms and drill a total of 31 wells. Production will be brought onstream in stages between the second quarter of 2002 and early 2003.
Total ExxonMobil production in Malaysia is 280 kbd of oil and 1.4 bcfd of gas. The company is the largest oil producer in the country and supplies 70 percent of Peninsular Malaysia with natural gas.
ExxonMobil Exploration and Production Malaysia Inc. (EMEPMI), a subsidiary of Exxon Mobil Corporation, is the operator for the project. It is developing the fields on behalf of its joint venture with PETRONAS Carigali Sdn Bhd (PCSB), a subsidiary of Malaysian national oil company, PETRONAS. Under the various Production Sharing Contracts, EMEPMI has a working interest of between 78 percent and 80 percent in the fields, with the remaining interest being held by PCSB.
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