Friday June 22, 2012
RM16.5bil investment for North Malay Basin project
KUALA LUMPUR: Petroliam Nasional Bhd (Petronas) expects US$5.2bil (RM16.53bil) to be invested in the North Malay Basin project, a new integrated gas development in Peninsular Malaysia, over the next five years.
In a statement, Petronas said the project would commercialise around 1.7 std trillion cu ft of gas reserves from the area. “The project is part of Petronas’ overall efforts, including the various enhanced recovery initiatives, to enhance the security of gas supply situation in the country.”
It said it had signed three main contracts with Petronas Carigali Sdn Bhd and Hess Exploration and Production Malaysia B.V that would pave the way for the implementation of the project.
The first contract is the amended production sharing contract (PSC) for offshore Block PM302, while the other two contracts are new exploration PSCs for Blocks PM325 and PM326B, adjacent to Block PM302. “All three PSCs are on a 50:50 equity split between Petronas Carigali and Hess Exploration and Production Malaysia.”
“The project will see the development and commercialisation of nine stranded gas fields together with the development of a new gas gathering, processing and transportation hub. It will involve the construction of 300 km of pipeline and a new onshore slug catcher that will consist of an acid gas removal system that applies the membrane technology for acid gas removal co-owned by Petronas, the first of its kind to be used onshore,” the national oil company said.
Petronas said the project would be implemented in two phases –the early production system (EPS) phase, and the full field development (FFD).
First gas under the EPS phase is targeted for the first quarter of 2013 at 100 million standard cu ft per day (mmscfd), while the FFD phase will deliver about 300 mmscfd from second quarter of 2015.