Contracts reveal North Malay basin gas project schedule

Offshore staff

KUALA LUMPUR, Malaysia –PETRONAS, the national oil company of Malaysia, has signed contracts with PETRONAS Carigali Sdn Bhd and Hess Exploration and Production Malaysia BV that further define implementation of the North Malay basin gas project.

The production sharing contract (PSC) for offshore block PM302 was amended and two new PSCs were signed for tracts adjacent to PM302.

Plans are for nine stranded gas fields to be made commercial in conjunction with new gas gathering, processing, and transportation hub. All together, the project calls for 300 km (186 mi) of pipeline and a new onshore slug catcher with acid gas removal.

The Phase 1 early production system will be followed by the Phase 2 full-field development. First gas in the early production phase is targeted for 1Q 2013 at 11 MMcf/d. That will rise to 300 MMcf/d in 2Q 2015 with the completion of the second phase.

6/29/2012