ExxonMobil awards Damar gas project contract to Malaysia Marine and Heavy Engineering

December 06, 2012

KUALA LUMPUR, Dec 6 – ExxonMobil Exploration and Production Malaysia Inc, a subsidiary of Exxon Mobil Corporation, continued its long-term investment in Malaysia by awarding a contract to build facilities for the Damar gas development project to Malaysia Marine and Heavy Engineering Sdn Bhd for RM165 million.

Under the terms of the contract signed recently, Malaysia Marine and Heavy Engineering will engineer, procure, construct and commission the topsides and platform jacket for the project.

Damar is one of several investments that will enable ExxonMobil and its co-venturer Petronas Carigali Sdn Bhd to develop natural gas assets to help ensure reliable and sustainable energy supplies for Malaysia.

“The development of Damar signifies another important step in our partnership with Petronas and Petronas Carigali to economically and efficiently develop Malaysia’s oil and gas resources to meet rising energy needs,” said J. Hunter Farris, ExxonMobil Exploration and Production Malaysia Inc chairman and president.

“Damar will help provide additional gas supplies for Malaysia’s power and industrial needs and will promote the overall growth of the country’s natural gas sector,” Farris added.

The Damar project is located about 200 kilometres off the east coast of Peninsular Malaysia in approximately 55 metres of water. The project follows the previously announced Telok gas project, which ExxonMobil is developing for startup in the first quarter of 2013.

The Damar project consists of one four-legged gas satellite platform. Full well stream gas will be produced via a new 22-kilometre pipeline to the existing Lawit A platform for processing. A total of 16 development wells are planned for the platform, and field peak capacity is forecasted to be 200 million cubic feet of gas per day. Installation of facilities is planned to commence in the third quarter of 2013 and startup is targeted for later in the year.

The Damar platform is the latest generation of natural gas satellite platforms under ExxonMobil’s Design One, Build Many concept, which capitalises on efficiencies and lessons learned from previous development projects. The concept provides an economical approach to develop smaller fields and significantly shortens construction and installation timelines.

Damar is being developed under a gas production sharing contract between ExxonMobil Exploration and Production Malaysia, Petronas Carigali and Petronas.

ExxonMobil is operator of the Damar field. ExxonMobil and Petronas Carigali each hold a 50 per cent interest in the gas production sharing contract. – Bernama



About artidj

I started working as a field engineer in Oil & Gas industry back in 1996. I do this news clipping of the industry and the geography I am interested in, mainly for my own information. I'm glad you find it useful.
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