TOKYO – INPEX Offshore South West Sabah Ltd. has discovered oil at the Bestari-1 exploration well offshore eastern Malaysia.
The well, indeepwater block R, found what INPEX thinks is about 70 m (230 ft) of oil bearing sands across multiple horizons.
The company plans to evaluate the well data in anticipation of drilling two more exploration wells. Japan Oil, Gas and Metals National Corp. is expected to cover up to 50% of exploration expenditures incurred by INPEX Offshore South West Sabah Ltd. through equity capital.
The block covers 672 sq km (259 sq mi) with a water depth ranging from 100 m to 1,400 m (328 ft to 4,593 ft).
INPEX owns a 27.5% participating interest in the block alongside operator JX Nippon Oil & Gas Exploration (Deepwater Sabah) Ltd., Petronas Carigali Sdn. Bhd., and Santos Sabah Block R Ltd., which own participating interests of 27.5%, 25%, and 20%, respectively.