Exxonmobil Continues Malaysian Investment with Major Platform Installation

ExxonMobil Exploration and Production Malaysia Inc (EMEPMI), a subsidiary of ExxonMobil Corporation, has installed a gas compression platform at the Guntong E gas field in the South China Sea as part of its continuing long-term investment in Malaysia, the company said Tuesday.

Developed at a total project cost of about RM1 billion (US$280 million), Guntong E marks the first phase of the Guntong Hub development and would further boost Peninsular Malaysia's gas sales capacity, it added.

EMEPMI Chairman Rob Fisher said the Guntong E platform is a major offshore facility constructed and installed by Malaysian construction companies.

"When fully operational in 2006, the Guntong Hub, consisting of Guntong E and the two existing Guntong D production and compression platforms, will have a combined gas handling capacity of more than 800 million cu. ft of gas per day.

"This will enable us to embark on several future gas resource development commitments under the Gas Production Sharing Contract (GPSC) with PETRONAS to help meet increasing gas demand in Malaysia," he said.

EMEPMI said the Guntong Hub is expected to process a total of four trillion cu. ft of gas for sale in Peninsular Malaysia and will involve new drill wells, workover of existing wells, satellite platforms, inter-field pipelines and retrofit of existing platforms.

Guntong E was fully designed and fabricated in Malaysia. The detailed design of the topsides and jacket was undertaken by MMC Oil and Gas Engineering Sdn Bhd and Perunding Ranhill Worley Sdn Bhd respectively.

Fabrication activities commenced in February 2004 by Sime Darby Engineering for the platform topsides and Ramunia Fabricators for the jacket.

The Guntong E platform installation offshore was completed by TL Offshore in September 2005.

EMEPMI said the project required more than four million work hours to complete and involved more than 1,500 workers during peak construction activity.

Weighing a total of 17,800 tonnes, the platform is one of the largest commissioned by EMEPMI to date. Located about 210 km off the east coast of Peninsular Malaysia, Guntong E consists of an eight-leg jacket and six modules for gas receiving, separation, dehydration and compression.

Three large turbine-driven compressor trains will handle 540 million cubic feet of gas and 30 thousand barrels of condensate per day. Each compressor is powered by a 30,000 horsepower gas turbine, similar to the aircraft engine used on the Boeing 747.

A bridge connects Guntong E to the existing Guntong D gas compression platform.

The combined Guntong E and Guntong D complex is the largest steel structure offshore Peninsular Malaysia. The compressed gas from Guntong Hub fields will flow through existing pipelines to onshore processing plants in Kerteh, Terengganu.

ExxonMobil is developing gas from the Guntong field under the GPSC together with PETRONAS Carigali Sdn Bhd (PSCB), a wholly-owned subsidiary of PETRONAS. EMEPMI and PCSB each has 50 percent participating interest in the

EMEPMI is one of the major crude oil producers and suppliers of natural gas in Malaysia.

Daily crude oil production is about 240,000 barrels of liquids per day while daily gas production is approximately 1.1 billion cu. ft of gas per day.