Production from the ExxonMobil-operated Larut field and the Satellite Fields Development (SFD) project, as well as the Petronas Carigali Sdn Bhd (PCSB)-operated Angsi facilities, will help maintain Malaysia's projected oil production requirements, and add to the country's ability to meet growing gas demand. Production from the three developments is expected to total more than 320 million barrels of oil and 1.5 trillion cubic feet of gas over the next 25 years. The total development costs for all three projects, including drilling costs, are estimated at US$1.7 billion.
Larut is the first field to be developed in block PM5, 125 miles offshore of Terengganu, Malaysia, in the South China Sea, and at its peak is expected to produce over 30,000 barrels of oil per day (kbd) and 35 million cubic feet of gas per day (mcfd). Expected peak production from the three new facilities is expected to total almost 140 kbd and 535 mcfd.
"ExxonMobil and Petronas have worked together to hold oil production levels steady by maximizing the output from existing fields and finding economic ways to develop the smaller, more technically challenging fields," said Mr. Terry Koonce, President, ExxonMobil Production Company.
He added that both Larut and SFD project had been considered economically marginal until the company developed innovative facility designs and project development plans that resulted in significant cost savings. "These types of developments are part of our commitment to use the company's technological expertise to extend the economic life of existing reserves by applying world-class practices and efficiencies."
One of the most satisfying aspects of the Larut development is that it was the safest project in ExxonMobil's history in Malaysia. Over 4.6 million workhours were completed over a four year period without a single employee or contractor Lost Time Injury. This is a remarkable achievement and a testimony to our focus on safety performance in all areas where the company operates.
ExxonMobil, as operator, is developing Larut with co-venturer PCSB under a 50:50 Production Sharing Contract with Petronas. EMEPMI is also the operator for the SFD project, being developed on behalf of its joint venture with PCSB. Under the various Production Sharing Contracts, EMEPMI has a working interest of between 78 percent and 80 percent in the SFD fields, with the remaining interest being held by PCSB. Angsi, is being developed jointly by 50:50 co-venturers PCSB, as operator, and EMEPMI.
ExxonMobil is the largest oil producer in Malaysia, with current operated oil production of approximately 280 kbd, nearly 50 percent of the nation's total. ExxonMobil also produces 1.4 billion cubic feet per day of gas, which supplies around 70 percent of Peninsular Malaysia's gas requirements.
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