Singapore (Platts)–10Dec2013/1030 pm EST/330 GMT
US-based Hess and Malaysian Petronas have started gas production from the North Malay Basin project offshore Peninsular Malaysia, according to a statement issued Tuesday by EOC Ltd., which has supplied the floating, production, storage and offloading vessel for the project.
Oslo-listed EOC said that the FPSO Perisai Kamelia, which is deployed in the Kamelia field of the project, has successfully completed startup and commissioning. The FPSO has a designed capacity of 175,000 Mcf/d, according to a company official.
The FPSO has been modified to meet the operational requirements of the North Malay Basin, including the addition of an external turret mooring system able to withstand tropical cyclone conditions, the company said in its statement.
The North Malay Basin project envisages development and commercialization of nine stranded gas fields offshore Terengganu.
Malaysian national oil company’s upstream arm, Petronas Carigali, and the local subsidiary of US-based Hess in June 2012 signed three production sharing contracts, paving the way for the implementation of the North Malay Basin project. The three PSCs, in which Petronas Carigali and Hess have an equal 50% stake, are for blocks PM302, PM325 and PM326b.
Approximately $5.2 billion will be invested in the North Malay Basin project through its phased development over the next five years, Petronas had said then, adding that the project will commercialize around 1.7 Tcf of gas reserves.
The project is expected to produce 100,000 Mcf/d in the first early production system phase, and ramp up to 300,000 Mcf/d in the second full field development phase.
The second phase is slated for start in 2017, a Petronas spokesman had said in October.
Besides the nine stranded gas fields, the project includes the development of a new gas gathering, processing and transportation hub in Terengganu.
South Korea’s Samsung Engineering has been awarded a $770 million contract to build a gas terminal in Kerteh, Terengganu, to process gas evacuated from the North Malay Basin and other projects in the area.
–Mriganka Jaipuriyar, email@example.com –Edited by E Shailaja Nair, firstname.lastname@example.org