(Kuala Lumpur)-- The deepwater Gumusut field off Sarawak is scheduled for development by 2011, targeting 100,000 b/d, Mohd Hassan Marican, president and CEO of the Malaysian national oil corporation, Petronas.

Addressing the press after opening the 11th Asia Oil and Gas conference, he said the field would be developed by Petronas' upstream unit, Petronas Carigali, and its production sharing contract partners.

He also said Kikeh field development is on schedule with 120,000 b/d output expected from early 4Q06.

Petronas Carigali and Murphy Oil are developing the deepwater Kikeh field, off Sabah state.

Hassan Marican said the two field would help Malaysia maintain its current production of 720,000 b/d of crude oil and 5.5 bcf/d of natural gas.

He expressed concern about rising development costs, especially the shortage of material, equipment, and both the exploration and production rigs.

He highlighted the long lead time in securing the equipment while steel prices were on the upswing.

He said Petronas has taken on 13 rigs on long-term contracts to continue its exploration and development work.

"The increase in Capex and shortage in capacity in the contracting services may result in the deferment and delays of sme projects," he said.

6/12/06