Production from Serai Gas Field to Begin in 2004

Nippon Oil Corp expects to commence production the Serai natural gas field offshore Sarawak, Malaysia in the second quarter of 2004. The field, located in block SK-8 and operated by Shell, is expected to have a peak production of about 8.5 million cubic meters per day.

Nippon Oil also said it expected to begin gas production at its Jintan field, also in block SK-8, in the third quarter of this year as planned. Gas produced from both the Serai and Jintan gas fields will be transported to Bintulu Sarawak through a submarine pipeline. It will be liquefied by Malaysia LNG Tiga, a joint venture in which Nippon Oil is a member.

Both Nippon Oil and Shell have a 37.5 percent stake in the Serai field, and Petronas holds the remaining 25 percent.