Petronas has signed a Production Sharing Contract with ExxonMobil Exploration and Production Inc. (EMEPMI) and Petronas Carigali Sdn. Bhd, its wholly owned subsidiary, for further development of seven oil fields offshore Peninsular Malaysia.
The PSC spells out the full terms of the agreement whose main principles were signed by the three parties in March 2008 for the development of the seven fields, namely Seligi, Guntong, Tapis, Semangkok, Irong Barat, Tabu and Palas.
Under the terms of the PSC, EMEPMI and its partner Petronas Carigali firm up their commitment to spend a minimum of US $2.1 billion to undertake major enhanced oil recovery (EOR) project activities, rejuvenation of facilities and further development and drilling activities in the fields.
The key objective of the PSC is to meet Petronas and the partners' aspiration to extract more oil from matured fields through EOR projects and to sustain the current production level of Tapis crude blend. The PSC will also tap on EMEPMI's technologies and long-term commitment towards building and nurturing the capability of local experts through the transfer and sharing of best practices, technical studies, research and training programs.
The signing ceremony for the PSC was held at the Petronas Twin Towers. Petronas was represented by its Vice President of Exploration & Production Business Encik Ramlan Abdul Malek; EMEPMI by its Chairman & President Mr. Liam M. Mallon; and Petronas Carigali by its Managing Director/CEO Datuk Abdullah Karim.
The event was also attended by Exxon Mobil Corporation's Senior Vice President & Treasurer Mr. Donald D. Humphreys; and ExxonMobil Production Company's President Mr. Rich M. Kruger. Also present was Mr. Hugh Thompson who will replace Mr. Mallon as the new Chairman & President of EMEPMI.
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