Malaysia’s oil company PETRONAS has informed oil production from the Balai field in the Balai Cluster Risk Service Contract (RSC) area, has started on 6 November 2013.

The field’s first oil was achieved utilising an early production vessel (EPV) as a part of the RSC area’s extended well testing (EWT) programme.

The Balai Cluster RSC was awarded in August 2011 to BC Petroleum Sdn Bhd, a partnership between Roc Oil (Malaysia) Pty Ltd, Dialog D & P Sdn Bhd and PETRONAS Carigali Sdn Bhd. It is the second RSC that has successfully achieved oil production after the Berantai gas field.

The development area is located approximately 100-130 km northeast of Bintulu. The project facilities consist of four light weight Tarpon Guyed Caisson Well Head Platforms and an EPV, namely the EPV Balai Mutiara, with on board storage capacity of about 50,000 barrels, well testing facilities and accommodation for 40 persons.

The EWT is part of the Balai Cluster pre-development phase and is designed to provide additional production and reservoir performance information required from the oil fields in order to support the field development planning process.

Source : http://www.offshoreenergytoday.com/oil-flows-from-balai-field-offshore-malaysia/

Petronas Awards $3.1B in Offshore Jobs to Local Firms

KUALA LUMPUR, Nov 15 (Reuters) – Petroliam Nasional Bhd (Petronas), Malaysia's state oil firm, has awarded a 13-package, five-year offshore hook-up, commissioning and maintenance services contract worth 10 billion ringgit ($3.12 billion) to six local companies. 

The deals, awarded under the Pan Malaysia Integrated Hook-Up & Commissioning and Topside Major Maintenance Contract, mark one of Petronas' largest service contracts currently in place as it seeks to drive and support growth among local companies. 

The companies are Kencana HL Sdn Bhd, Dayang Enterprise Sdn Bhd, Petra Resources Sdn Bhd, PBJV Sdn Bhd, Carimin Engineering Services Sdn Bhd and Sigur Ros Sdn Bhd. The deals are for a period of five years starting from 2013, according to Petronas. "The award of this major contract is Petronas' acknowledgment of the capability of local service providers," said Ramlan A. Malek, Petronas' vice president of Petroleum Management. 

Drilling Rigs

Offshore Drilling Drilling for natural gas offshore, in some instances hundreds of miles away from the nearest landmass, poses a number of different challenges over drilling onshore. The actual drilling mechanism used to delve into the sea floor is much the same as can be found on an onshore rig. However, with drilling at sea, the sea floor can sometimes be thousands of feet below sea level. Therefore, while with onshore drilling the ground provides a platform from which to drill, at sea an artificial drilling platform must be constructed. Source: ChevronTexaco Corporation Drilling offshore dates back as early as 1869, when one of the first patents was granted to T.F. Rowland for his offshore drilling rig design. This rig was designed to operate in very shallow water, but the anchored four legged tower bears much resemblance to modern offshore rigs. It wasn't until after World War II that the first offshore well, completely out of sight from land, was drilled in the Gulf of Mexico in 1947. Since then, offshore production, particularly in the Gulf of Mexico, has resulted in the discovery and delivery of a great number of large natural gas deposits. The Drilling Template Since the land that is going to be drilled cannot provide a base for offshore drilling as it does for onshore drilling, an artificial platform must be created. This artificial platform can take many forms, depending on the characteristics of the well to be drilled, including how far underwater the drilling target is. One of the most important pieces of equipment for offshore drilling is the subsea drilling template. Essentially, this piece of equipment connects the underwater well site to the drilling platform on the surface of the water. This device, resembling a cookie cutter, consists of an open steel box with multiple holes in it, dependent on the number of wells to be drilled. This drilling template is placed over the well site, and usually lowered into the exact position required using satellite and GPS technology. A relatively shallow hole is then dug, in which the drilling template is cemented into place. The drilling template, secured to the sea floor and attached to the drilling platform above with cables, allows for accurate drilling to take place, but allows for the movement of the platform, which will inevitably be affected by shifting wind and water currents. In addition to the drilling template, a blowout preventer is installed on the sea floor. This system, much the same as that used in onshore drilling, prevents any oil or gas from seeping out into the water. Above the blowout preventer, a specialized system known as a 'marine riser' extends from the sea floor to the drilling platform above. The marine riser is designed to house the drill bit and drillstring, and yet be flexible enough to deal with the movement of the drilling platform. Strategically placed slip and ball joints in the marine riser allow the subsea well to be unaffected by the pitching and rolling of the drilling platform. Moveable Offshore Drilling Rigs There are two basic types of offshore drilling rigs: those that can be moved from place to place, allowing for drilling in multiple locations, and those rigs that are permanently placed. Moveable rigs are often used for exploratory purposes because they are much cheaper to use than permanent platforms. Once large deposits of hydrocarbons have been found, a permanent platform is built to allow their extraction. The sections below describe a number of different types of moveable offshore platforms. A Drilling Barge Source: California Department of Transportation Drilling Barges Drilling barges are used mostly for inland, shallow water drilling. This typically takes place in lakes, swamps, rivers, and canals. Drilling barges are large, floating platforms, which must be towed by tugboat from location to location. Suitable for still, shallow waters, drilling barges are not able to withstand the water movement experienced in large open water situations. Jack-Up Rigs A Jack-Up Rig Source: National Oceanic and Atmospheric Administration  Jack-up rigs are similar to drilling barges, with one difference. Once a jack-up rig is towed to the drilling site, three or four 'legs' are lowered until they rest on the sea bottom. This allows the working platform to rest above the surface of the water, as opposed to a floating barge. However, jack-up rigs are suitable for shallower waters, as extending these legs down too deeply would be impractical. These rigs are typically safer to operate than drilling barges, as their working platform is elevated above the water level. Submersible Rigs Submersible rigs, also suitable for shallow water, are like jack-up rigs in that they come in contact with the ocean or lake floor. These rigs consist of platforms with two hulls positioned on top of one another. The upper hull contains the living quarters for the crew, as well as the actual drilling platform. The lower hull works much like the outer hull in a submarine - when the platform is being moved from one place to another, the lower hull is filled with air - making the entire rig buoyant. When the rig is positioned over the drill site, the air is let out of the lower hull, and the rig submerses to the sea or lake floor. This type of rig has the advantage of mobility in the water, however once again its use is limited to shallow water areas. Semisubmersible Rigs A Semisubmersible Rig Source: Department of the Interior Semisubmersible rigs are the most common type of offshore drilling rigs, combining the advantages of submersible rigs with the ability to drill in deep water. A semisubmersible rig works on the same principle as a submersible rig: through the 'inflating' and 'deflating' of its lower hull. The main difference with a semisubmersible rig, however, is that when the air is let out of the lower hull, the rig does not submerge to the sea floor. Instead, the rig is partially submerged, but still floats above the drill site. When drilling, the lower hull, filled with water, provides stability to the rig. Semisubmersible rigs are held in place by huge anchors, each weighing upwards of 10 tons. These anchors, combined with the submerged portion of the rig, ensure that the platform is stable and safe enough to be used in turbulent offshore waters. Semisubmersible rigs can be used to drill in much deeper water than the rigs mentioned above. A Drillship in the Beaufort Sea Source: Mining and Minerals Service Drillships Drillships are exactly as they sound: ships designed to carry out drilling operations. These boats are specially designed to carry drilling platforms out to deep-sea locations. A typical drillship will have, in addition to all of the equipment normally found on a large ocean ship, a drilling platform and derrick located on the middle of its deck. In addition, drillships contain a hole (or 'moonpool'), extending right through the ship down through the hull, which allows for the drill string to extend through the boat down into the water. Drillships are often used to drill in very deep water, which can often be turbulent. Drillships use what is known as 'dynamic positioning' systems. Drillships are equipped with electric motors on the underside of the ship’s hull, capable of propelling the ship in any direction. These motors are integrated into the ship’s computer system, which uses satellite positioning technology, in conjunction with sensors located on the drilling template, to ensure that the ship is directly above the drill site at all times. Offshore Drilling and Production Platforms As mentioned, moveable rigs are commonly used to drill exploratory wells. In some instances, when exploratory wells find commercially viable natural gas or petroleum deposits, it is economical to build a permanent platform from which well completion, extraction, and production can occur. These large, permanent platforms are extremely expensive, however, and generally require large expected hydrocarbon deposits to be economical to construct. Some of the largest offshore platforms are located in the North Sea, where because of almost constant inclement weather, structures able to withstand high winds and large waves are necessary. A typical permanent platform in the North Sea must be able to withstand wind speeds of over 90 knots, and waves over 60 feet high. Correspondingly, these platforms are among the largest structures built by man. There are a number of different types of permanent offshore platforms, each useful for a particular depth range. An Offshore Platform Source: Duke Energy Gas Transmission Canada This depiction of offshore drilling and completion platforms gives an idea of just how massive these offshore rigs can be. For reference, the fixed platform (the shallowest shown) is usually in no more than 1,700 feet of water - whereas the height of the Hoover Dam, from top to bottom, is less than half that, at just under 730 feet. Because of their size, most permanent offshore rigs are constructed near land, in pieces. As the components of the rig are completed, they are taken out to the drilling location. Sometimes construction or assembly can even take place as the rig is being transported to its intended destination. Fixed Platforms In certain instances, in shallower water, it is possible to physically attach a platform to the sea floor. This is what is shown above as a fixed platform rig. The 'legs' are constructed with concrete or steel, extending down from the platform, and Offshore Drilling Platforms Source: MMS fixed to the seafloor with piles. With some concrete structures, the weight of the legs and seafloor platform is so great, that they do not have to be physically attached to the seafloor, but instead simply rest on their own mass. There are many possible designs for these fixed, permanent platforms. The main advantages of these types of platforms are their stability, as they are attached to the sea floor there is limited exposure to movement due to wind and water forces. However, these platforms cannot be used in extremely deep water, it simply is not economical to build legs that long. Compliant Towers Compliant towers are much like fixed platforms. Each consists of a narrow tower, attached to a foundation on the seafloor and extending up to the platform. This tower is flexible, as opposed to the relatively rigid legs of a fixed platform. This flexibility allows it to operate in much deeper water, as it can 'absorb' much of the pressure exerted on it by the wind and sea. Despite its flexibility, the compliant tower system is strong enough to withstand hurricane conditions. Seastar Platforms Seastar platforms are like miniature tension leg platforms. The platform consists of a floating rig, much like the semisubmersible type discussed above. A lower hull is filled with water when drilling, which increases the stability of the platform against wind and water movement. In addition to this semisubmersible rig, however, Seastar platforms also incorporate the tension leg system employed in larger platforms. Tension legs are long, hollow tendons that extend from the seafloor to the floating platform. These legs are kept under constant tension, and do not allow for any up or down movement of the platform. However, their flexibility does allow for side-to-side motion, which allows the platform to withstand the force of the ocean and wind, without breaking the legs off. Seastar platforms are typically used for smaller deep-water reservoirs, when it is not economical to build a larger platform. They can operate in water depths of up to 3,500 feet. A Floating Production System Source: Minerals Management Service Floating Production Systems Floating production systems are essentially semisubmersible drilling rigs, as discussed above, except that they contain petroleum production equipment, as well as drilling equipment. Ships can also be used as floating production systems. The platforms can be kept in place through large, heavy anchors, or through the dynamic positioning system used by drillships. With a floating production system, the wellhead is actually attached to the seafloor once the drilling is completed, rather than being attached up to the platform. The extracted petroleum is transported via risers from this wellhead to the production facilities on the semisubmersible platform. These production systems can operate in water depths of up to 6,000 feet. A Tension Leg Platform Source: Minerals Management Service Tension Leg Platforms Tension leg platforms are larger versions of the Seastar platform. The long, flexible legs are attached to the sea floor, and run up to the platform itself. As with the Seastar platform, these legs allow for significant side-to-side movement (up to 20 feet), with little vertical movement. Tension leg platforms can operate at around 7,000 feet. Subsea System Subsea production systems are wells located on the sea floor, as opposed to at the surface. Just as in a floating production system, the petroleum is extracted at the seafloor, and then 'tied-back' to an already existing production platform. The well is drilled by a moveable rig, and instead of building a production platform for that well, the extracted natural gas and oil are transported by riser or even undersea pipeline to a nearby production platform. This allows one strategically-placed production platform to service many wells over a reasonably large area. Subsea systems are typically in use at depths of 7,000 feet or more, and do not have the ability to drill, only to extract and transport. To see an example of a subsea production system in the Gulf of Mexico, click here. Spar Platforms Spar platforms are among the largest offshore platforms in use. These huge platforms consist of a large cylinder supporting a typical fixed rig platform. The cylinder does not extend all the way to the seafloor, but instead is tethered to the bottom by a series of cables and lines. The large cylinder serves to stabilize the platform in the water, and allows for movement to absorb the force of potential hurricanes. The first Spar platform in the Gulf of Mexico was installed in September of 1996. Its cylinder measured 770 feet long and was 70 feet in diameter, and the platform operated in 1,930 feet of water. To see an example of a Spar platform in the Gulf of Mexico, click here. To learn more about offshore drilling in the Gulf of Mexico, visit the U.S. Bureau of Ocean Management Regulation and Enforcement here. Source : http://www.naturalgas.org/naturalgas/extraction_offshore.asp

ROC announces commencement of extended well test programme Balai Cluster Risk Service Contract (RSC)

 

Wednesday, Nov 13, 2013

 

ROC advises that BC Petroleum Sdn Bhd (BCP), the company incorporated to operate and manage the Cluster RSC in Malaysia, has commenced a programme of Extended Well Testing (EWT) on the 2 well utilising the recently commissioned Early Production Vessel (EPV) "Balai Mutiara".

The EWT commenced on 6 November 2013 and flowed for approximately 24 hours before shutting in to obtain pressure performance data. The production is from two perforated intervals in the upper reservoir sands (1,895 – 1,901m MDRT and 1,906 - 1,912m MDRT) and the initial average rate was in the range 4,000 to 4,200 bopd and the oil gravity was measured at 39 deg API.

Following a short shut in period, EWT production has recommenced and will continue for an extended period.

The EWT programme is designed to provide additional production and reservoir performance information, required from the oil fields to support the field development planning process. The EWT programme is the final operational phase in the pre development EVP gas flare after commencement of production.

Subject to commercial viability, BCP aims to submit a Field Development Plan and move towards Final Investment Decision by the end of 2013.

Shareholders of BCP are ROC (48%), Dialog Group (32%) and PETRONAS Carigali (20%).

Source: ROC

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Talisman Malaysia

Talisman holds a 41% operated interest in Block PM-3 CAA PSC between Malaysia and Vietnam and associated production facilities. In addition, Talisman holds a 33% interest in Block 46-Cai Nuoc adjacent to PM-3 CAA and a 60% interest in each of Block PM-305 and Block PM-314. In Block PM-3 CAA, Talisman is operating facilities referred to as the ‘‘Southern Fields’’ and the ‘‘Northern Fields.’’ The Kekwa sub block in PM-3 CAA expiry date has been extended nine months to April 2013. Negotiations to further extend the Kekwa sub block as well as the balance of Block PM-3 CAA, which expires in 2017, are ongoing.

Talisman also holds a 70% working interest in exploration licences for SB-309 and SB-310, acreages offshore Sabah in east Malaysia. In 2012 Talisman was awarded a 60% equity interest and operatorship of the Kinabalu Oil PSC, which is a mature oilfield in the offshore Malaysian Sabah Basin. Operatorship of this PSC became effective in December 2012 and has the potential for significant liquids growth as well as providing tieback synergies with potential discoveries in the existing Talisman Sabah exploration licences.

In 2012, production in Malaysia averaged 36.8 mboe/d, which accounted for approximately 29% of Talisman’s total Southeast Asia production. Six development wells were drilled in Malaysia in 2012, one of which was a water injector.

Optimization initiatives at PM-3 CAA to maximize gas production and meet strong regional demand have resulted in an increase of 8% in gas production over the previous year and the highest production levels since 2004.  In 2013, Talisman plans to drill several development wells in Kinabalu and the PM-3 CAA Southern fields.

Malaysia - Exploration

In 2012, Talisman acquired 3D seismic data over the SB310 Block offshore Sabah.

In 2013, Talisman is planning to drill two offshore exploration wells in Sabah Blocks SB309 and SB310.

Source : http://www.talisman-energy.com/operations/asia-pacific/malaysia.html

TOTAL ACQUIRES INTEREST IN A DEEP OFFSHORE EXPLORATION BLOCK

November 19, 2010: Total announces that it has signed an agreement with the national oil company Petronas to acquire a 85% interest in the Block SK317B, offshore Malaysia. Under the terms of the agreement, Total will operate the Block alongside its partner Petronas Carigali holding the remaining 15% interest. 

The Block SK317B is located around 100 kilometres offshore Sarawak, in water depths ranging from 200 to 1,000 metres. It covers an area of more than 700 square kilometres. The work commitments during the exploration period encompass seismic data acquisition and deep offshore exploration drilling, an area in which Total enjoys a recognized expertise.

“This acquisition reflects Total’s strategy to expand its exploration acreages in new areas or on new themes while developing its partnerships with national oil companies such as Petronas”, stated Jean-Marie Guillermou, Senior Vice President Asia-Pacific at Total Exploration & Production.

Total E&P Malaysia

Total is already present in Malaysia with a 70% interest together with Petronas Carigali (30%) in a Production Sharing Agreement signed in 2008 which covers the Block PM303 and PM324, located offshore Peninsular Malaysia. Total operates these two blocks where a seismic campaign was shot in 2009 and where a high-pressure/high temperature exploration drilling campaign will start in 2011.

Total Exploration & Production in Asia-Pacific

Total’s share of production in the Asia-Pacific region averaged 250,000 barrels of oil equivalent per day in 2009, accounting for 11% of the Group’s total output and more than 50% of its liquefied natural gas (LNG) output. Its biggest presence is in Indonesia, where Total has operated the Mahakam Block since 1970 and is one of the country’s leading producers of natural gas. The Group also produces gas in Thailand, Myanmar and the Sultanate of Brunei.

Total diversified its exploration assets with the acquisition of interests in Australia, Cambodia, Malaysia and Vietnam. In addition, it has a 24% interest in Ichthys LNG project in Australia, in partnership with INPEX and it recently acquired a 20% interest in GLNG project in partnership with Santos and Petronas. In China Total has signed a production sharing contract with China National Petroleum Corporation to study the natural gas resources of the South Sulige Block.

Source : http://total.com/en/media/news/press-releases/20101119-malaysia-total-acquires-interest-deep-offshore-exploration-block

Coastal Group secured vessel sales worth RM318 million

Tuesday, Oct 22, 2013

Coastal Contracts Bhd ("Coastal" or "Company", and together with its subsidiaries "Coastal Group" or "Group") today announced that its

wholly-owned subsidiaries, Coastal Offshore (Labuan) Pte Ltd and Thaumas Marine Ltd have collectively secured contracts for the sales of six units Offshore Support Vessels ("OSV"), which comprise one unit Subsea Support Maintenance Vessel ("SSMV"), one unit Platform Supply Vessel ("PSV") and four units Anchor Handling Tug Supply ("AHTS") for

an aggregate value of approximately RM318 million.

Apart from the one unit PSV and two units AHTS which were sold to a repeat customer, the rest of the vessels were sold to new customers. Clinching of these new contracts has further strengthened the Group’s already sizeable order book, which provides greater earnings

visibility for the Group.

All of these vessels are expected to be delivered in 2013 and 2014. Consequently, the revenue stream from these vessels is expected to contribute positively to the top and bottom line performance of the Group for the financial years ending 31 December 2013 and 31 December 2014. As of to date, Coastal Group has approximately RM1.28 billion worth of

vessel sales orders awaiting delivery to customers up to 2014.

Mr Ng Chin Heng, the Executive Chairman of Coastal, commented:

"I am pleased to announce that Coastal Group has secured another major win of vessel sales orders with an aggregate value of approximately RM318 million. Following our order book intakes in April, July and August this year, this is our fourth major win in FY2013. As of to date, the cumulative vessel sales orders secured in FY2013 alone amounted to approximately RM1.35 billion, which is approximately two times of the Group’s total vessel sales orders secured in FY2012 which amounted

RM698 million. This is a strong indicator for the Group’s rebound momentum, which is benefiting from the currently booming oil and gas sector.

Our order inflow looks favourable. Including these new contract wins, Coastal Group’s vessel sales orders as at to date stands at approximately RM1.28 billion. With current highly buoyant offshore market, we believe the Group would be able to capitalise more opportunities moving forward. Anchored on the buoyant oil and gas upstream sector globally with increasing offshore exploration and production activities, we are upbeat with the prospect of OSV market over the medium to long term, especially for more sophisticated and deepwater-capable OSV."

Source: http://www.coastalcontracts.com

Kebabangan Gas Field, Malaysia

The Kebabangan gas field is located in the South China Sea, 130km offshore Sabah, East Malaysia. It is part of the Kebabangan Cluster, which contains two more fields Kamunsu East and Kamunsu East Upthrown Canyon. The water depth at the cluster ranges from 100m to 400m.

The cluster is owned by Petronas Carigali (40%), ConocoPhillips (30%) and Shell (30%). The three co-owners signed the development and production sharing contract for the cluster in 2007.  A joint-venture called Kebabangan Petroleum Operating Company (KPOC) was set up to act as the cluster operator.

A project named The Kebabangan Northern Hub Project was undertaken to develop the three fields in the cluster. The project began with the development of the Kebabangan field and is currently in the detailed design phase. Production is scheduled to begin in 2014.

The Kebabangan field is estimated to contain approximately two trillion cubic feet (tcf) of gas.  The field will be tied back to an integrated platform that will be designed to serve the entire cluster. The development will involve drilling of 12 subsea production wells and construction of a drilling cum production platform. The drilling will be carried out in two phases. The Kebabangan platform will be a floating platform with the capacity to handle 825 million cubic feet of gas (mcf) and 22,000 barrels of condensate per day. It will be installed in a water depth of 142m (466ft). The topsides will be installed onto a fixed eight-leg steel jacket in place weighing 12,300t. The deck will weigh 17,000t and feature a Tender Assisted Drilling (TAD) rig, utilities and living quarters for people working onboard.

The Malaikai deep water field operated by Shell is planned to be tied to the platform once the Kebabangan field enters production stage. The platform is being designed with surplus capacity so that third party fields can also be tied in future. The Kebabangan field will produce 130 to 140 million barrels of oil equivalent per day (MBOED) at peak.

The produced gas will reach the platform, from where it will be transferred by a pipeline to the Sabah Oil and Gas terminal being built by Petronas at Kimanis. The terminal is located approximately 135km away from the field. A subsea pipeline of 24in diameter and 135km length is proposed to be laid to carry the gas from the platform to the terminal at Sabah. Another pipeline of 14in diameter will be laid to carry the oil produced at the platform.

The produced gas will first reach the SOGT from where it will be sent to the Petronas LNG complex at Bintulu through a 500km pipeline for processing. The front end engineering and design (FEED) contract of the project was awarded to Aker Solutions. The four-year contract is valued at Nkr170m (approximately $30m).

Source : http://www.offshore-technology.com/projects/kebabangan-field/

Murphy Oil Malaysia

Murphy entered Malaysia since 1999 , it is a core asset base producing more than 45% of our total 2012 net production. Murphy hold majority interests in five separate production sharing contracts (PSCs): Block K, Block H, SK 309, SK 311 and SK 314A, and three gas holding agreements in PM 311. In 2012, our Malaysia net production was about 89,000 boepd, and we booked total proved reserves 95.7 MMBO and 357.6 BCF.

The Kikeh field, the first deepwater development in Malaysia, has been in production since 2007.

Location: Block K, deepwater offshore Sabah
Basin: Sabah Delta
Working Interest: 80%, operated
Water Depth: 1,330 meters
Discovery Date: 2002
First Production Date: 2007
Products: Oil & Gas
Facility: FPSO with 120,000 bopd capacity

The Kakap field is unitized with the Gumusut field. The field has been in production since 2012 via interim tie-back to the Kikeh production facility. The primary production facility is expected to come on-stream at year end 2013.

Location: Block K, deepwater offshore Sabah
Basin: Sabah Delta
Working Interest: 14% of unitized field, non-operated
Water Depth: 1,220 meters
Discovery Date: 2004
First Production Date: 2012/ 2013
Product: Oil
Facility: FPS with 150,000 bopd capacity

The Siakap North field is unitized with the Petai field. First production is expected in 2013.

Location: Block K, deepwater offshore Sabah
Basin: Sabah Delta
Working Interest: 32% of unitized field, operated
Water Depth: 1,400 meters
Discovery Date: 2009
First Production Date: 2013
Product: Oil
Facility: Tie-back to Kikeh

The West Patricia field was Murphy’s first development in Malaysia and first production was in 2003. 

Location: Block SK 309, shallow water offshore Sarawak
Basin: Sarawak Delta
Working Interest: 85%, operated
Water Depth: 40 meters
Discovery Date: 1962
First Production Date: 2003
Product: Oil
Facility: FSO with 700,000 bo capacity, storage and offloading

The Sarawak Gas Project is multi-phase development for several natural gas discoveries in blocks SK309 and SK311, and started producing in 2009. Murphy provides gas to the Malaysia LNG complex via our gas sales contract with PETRONAS, the Malaysian state-owned oil company, for gross sales volumes up to 250 mmcfd.

Location: Block SK 309 & SK311, shallow water offshore Sarawak
Basin: Sarawak Delta
Fields: Golok, Merapuh, Serampang, Belum & Pemanis
Gas Holdings: Wangsa, Tiram, Mahkota, Sapih, Kerambit and East Patricia
Working Interest: 85%, operated
Water Depth: 34 to 40 meters
First Production Date: 2009
Products: Gas & Condensate
Facility: Gas sales via pipeline to shore; condensate to the West Patricia FSO

The Sarawak Oil Project comprises several oil discoveries in SK309 and SK311, and production scheduled to start up in the second half of 2013 through a series of new offshore platforms and pipelines tying back to West Patricia infrastructure. 

Location: Block SK309 & SK311, shallow water offshore Sarawak
Basin: Sarawak Delta
Fields: Patricia, Permas, Serendah & South Acis
Working Interest: 85%, operated
Water Depth: 32 to 48 meters
Discovery Date: 2005
First Production Date: 2013
Products: Oil & Gas
Facility: Tie-back to West Patricia FSO; gas sales via pipeline to shore

Since the Rotan discovery in 2007, we have several other natural gas discoveries nearby. Together with PETRONAS, we are evaluating a Floating LNG development to access these discoveries.

Location: Block H, deepwater offshore Sabah
Basin: Sabah Delta
Working Interest: 60% to 80%, operated
Water Depth: 1,128 meters (Rotan)
Discovery Date: 2007
First Production Date: 2017
Products: Gas
Facility: PETRONAS Floating LNG

These discoveries are currently held under gas holding agreements, and development options are being studied.

Location: Block PM311, shallow water offshore Peninsular Malaysia
Basin: Malay
Working Interest: 75%, operated
Water Depth: 74 meters
Discovery Date: September 2004

Murphy recently awarded this block in 2013, and it is adjacent to our other blocks in Sarawak.

Location: Shallow water offshore Sarawak
Basin: Sarawak Delta
Working Interest: 85%, operated
Water Depth: 10 to 34 meters

source : http://www.murphyoilcorp.com/Global-Operations/Southeast-Asia/Malaysia/

Sapura Kencana buying Newfield's Malaysian oil and gas assets

KUALA LUMPUR | Tue Oct 22, 2013 : By 0107 GMT, SapuraKencana shares were up 5.4 percent at 4.30 ringgit per share, outperforming the broader market's .KLSE 0.2 percent rise, as investors cheered the company's maiden expansion into the business of owning and operating fields.

"In essence we are acquiring a proven oil and gas operator with a balanced portfolio of producing and discovered fields and exploration assets in peninsula Malaysia and Sabah and Sarawak," SapuraKencana CEO, Shahril Shamsuddin, said in a statement.

The sale signals an aggressive diversification strategy, making the firm Malaysia's fourth-largest producer after oil majors like Shell (RDSa.L) and Exxon-Mobil (XOM.N).

"As a field owner and operator, this business will require different set of operating principles and as such we will manage this new business division separately as an independent subsidiary," he said.

SapuraKencana will hold interests in nine production-sharing blocks offshore Malaysia, giving the company an opportunity to learn the business and look at ways to boost the productivity of the fields - some of which are in natural decline.

The deal is subject to approval from state oil firm and industry regulator Petronas PETR.UL, which is in charge of awarding all production-sharing blocks in the country and has been tasked with boosting the production of marginal and depleted fields.

Baker Hughes awarded long-term contract with PETRONAS Carigali

Thursday, Oct 24, 2013 Baker Hughes Incorporated (NYSE: BHI) today announced that PETRONAS Carigali Sdn. Bhd. (PCSB) has entered into a long-term Oilfield Service Agreement (OFSA) with Baker Hughes to enhance the recoverable reserves and production of hydrocarbons in the Greater D18 fields, offshore Malaysia.

The 23-year agreement is the result of a collaborative, 2 1/2-year field development study, leveraging Baker Hughes' reservoir evaluation capabilities to analyze the geology and reservoir attributes of the mature and compartmentalized D18 field. Challenged with production declines, Baker Hughessuccessfully deployed two integrated production enhancement programs to revitalize production in target wells. Through further analysis, technical experts developed a comprehensive field development plan with fit-for-purpose technology solutions.

"We have utilized our best people to come up with solutions which are going to help PETRONAS Carigali Sdn. Bhd. [PCSB] achieve their goals of increased oil recovery from mature fields. The partnership between PCSB and Baker Hughes on this project represents a significant milestone in expanding our offering with reservoir development in addition to our traditional products and services portfolio," says Zvonimir Djerfi, President of Asia Pacific Region for Baker Hughes.

With the challenges surrounding this marginal, complex reservoir, Baker Hughes'field management strategy combines technical expertise and integrated solutions to enhance existing production by identifying new targets and efficiently constructing new wells to maximize production throughout the entire life cycle of the field.

Baker Hughes will participate in the redevelopment cost for the Greater D18 field in return for remuneration from the incremental production. The collaborative arrangement will extend the life of Greater D18 and will help sustain the area's economic strength. The company has successfully implemented a similar modeling strategy in other areas, including Asia Pacific, Mexico and the United States.

Baker Hughes is a leading supplier of oilfield services, products, technology and systems to the worldwide oil and natural gas industry. The company's 60,000-plus employees today work in more than 80 countries helping customers find, evaluate, drill, produce, transport and process hydrocarbon resources. For more information on Baker Hughes' century-long history, visit: www.bakerhughes.com.

Source: Baker Hughes

Technip and MMHE confirm their support to PETRONAS for the development of Block SK316

Monday, Oct 07, 2013

Technip, in a joint venture with Malaysia Marine and Heavy Engineering Sdn Bhd (MMHE), has received confirmation from PETRONAS Carigali for a substantial engineering, procurement, construction, installation and commissioning (EPCIC) contract for the development of two gas fields in Block SK316. Those fields are located approximately 180 kilometers North of Bintulu, Sarawak, at a water depth of 104 meters.

The Technip-MMHE joint venture had earlier participated in the front-end engineering design competition with subsequent rollover to EPCIC execution.

The EPCIC contract includes a central processing platform and a bridge-linked wellhead platform, which will be constructed at MMHE’s fabrication yard at Pasir Gudang in Johor, Malaysia, as well as a 75-kilometer pipeline, which will be installed by one of Technip’s pipe-laying vessels.

MMHE is a wholly-owned subsidiary of Malaysia Marine and Heavy Engineering Holdings Berhad (MHB).

For Technip, a “substantial” offshore contract is ranging from €250 to €500 million (Technip’s part of the contract).

Technip is a world leader in project management, engineering and construction for the energy industry.

From the deepest Subsea oil & gas developments to the largest and most complex Offshore and Onshore infrastructures, our 38,000 people are constantly offering the best solutions and most innovative technologies to meet the world’s energy challenges.

Present in 48 countries, Technip has state-of-the-art industrial assets on all continents and operates a fleet of specialized vessels for pipeline installation and subsea construction.

Source: Technip

FPSO

FPSO technology currently become popular in Malaysian Oil and Gas industry, let go through what is FPSO all about : 

Floating Production Storage and Offloading vessels, or FPSOs, are offshore production facilities that house both processing equipment and storage for produced hydrocarbons. The basic design of most FPSOs encompasses a ship-shaped vessel, with processing equipment, or topsides, aboard the vessel's deck and hydrocarbon storage below in the double hull. After processing, an FPSO stores oil or gas before offloading periodically to shuttle tankers or transmitting processed petroleum via pipelines.

FPSO

Moored in place by various mooring systems, FPSOs are effective development solutions for both deepwater and ultra-deepwater fields. A central mooring system allows the vessel to rotate freely to best respond to weather conditions, or weathervane, while spread-mooring systems anchor the vessel from various locations on the seafloor.

Usually tied to multiple subsea wells, FPSOs gather hydrocarbons from subsea production wells through a series of in-field pipelines. Once tapped by subsea wells, hydrocarbons are transmitted through flowlines to risers, which transport the oil and gas from the seafloor to the vessel's turret and then to the FPSO on the water's surface.

FPSO

The processing equipment aboard the FPSO is similar to what would be found atop a production platform. Usually built in modules, FPSO production equipment can consist of water separation, gas treatment, oil processing, water injection and gas compression, among others. Hydrocarbons are then transferred to the vessel's double-hull for storage.

Crude oil that is stored onboard is frequently transferred to shuttle tankers or ocean barges going ashore, via a loading hose. Loading oil from the stern of the FPSO to the bow of the shuttle tanker is known as tandem loading. While gas is many times transferred to shore via pipeline or re-injected into the field to boost production.

FPSO Characteristics

Permanently moored, FPSOs are viable development solutions for a number of different offshore field situations. Because FPSOs can be disconnected from their moorings, these offshore production vessels are optimal for areas that experience adverse weather conditions, such as cyclones and hurricanes.

FPSO

Additionally, because FPSOs can be moved, they are a more economical solution for more marginal fields, in that the vessel can be moved to another development and redeployed once the original field has been depleted. Also, FPSOs are an optimal choice for development when there are no existing pipelines or infrastructure to transfer production to shore. Adding to the economic advantages of FPSOs, existing tankers are frequently converted into FPSOs.

Used in offshore production since the 1970s, FPSOs have been historically utilized in the North Sea, offshore Brazil, Asia Pacific, the Mediterranean Sea and offshore West Africa.

Oil spills do not usually occur from FPSOs, although in the late 1990s the Texaco Captain FPSO spilled approximately 3,900 barrels of oil due to human error. Besides this incident, FPSOs have spilled less than approximately 500 barrels of oil combined.

Besides FPSOs, similar floating systems include Floating Storage and Offloading systems (FSOs), Floating Production Systems (FPSs) and Floating Storage Units (FSUs). Additionally, the world's first FDPSO, or Floating Drilling Production Storage and Offloading vessel, was developed in 2009 for Murphy Oil's Azurite field offshore Republic of Congo. This Azurite FDPSO incorporates deepwater drilling equipment that will help to develop the field and can be removed and reused after all the Azurite production wells have been drilled. Furthermore, the world's first FLNG or Floating Liquid Natural Gas vessel is currently being developed.

Article Source : http://www.rigzone.com/training/insight.asp?insight_id=299&c_id=12

JX Nippon Oil & Gas Exploration announces production sharing contract for deepwater block 2F, offshore Sarawak, Malaysia

Friday, Sep 20, 2013

JX Nippon Oil & Gas Exploration Corporation (President: Mr. Shigeo Hirai) is pleased to announce that JX Nippon Oil & Gas Exploration Corporation has entered into a Production Sharing Contract (PSC) for Deepwater Block 2F, Sarawak with PETROLIAM NASIONAL BERHAD (“PETRONAS”), the national oil company of Malaysia, through its subsidiary, JX Nippon Oil & Gas Exploration (Offshore Malaysia) Sdn. Bhd. (President: Mr. Hironori Wasada) to be effective from September 19, 2013.

Deepwater Block 2F is located in the northwest of Sarawak, with approximately 5,500 square kilometres surface area and 100-1,200 meters water depth. JX Nippon Oil & Gas Exploration (Offshore Malaysia) Sdn. Bhd. holds 40% Participating Interest and will conduct exploration activity as the operator at Deepwater Block 2F.

Deepwater Block 2F is our 6th project (and 4th project as operator) in Malaysia.

In Malaysia, we are operator for Block SK10, offshore Sarawak which is now in the 10th year of gas production and studying further development. We are also the operator carrying out exploration activities in Block SK333 onshore Sarawak and Deepwater Block R offshore Sabah. In Block SK333, accumulation of oil and gas were confirmed at Adong Kecil West-1 well which was drilled in 2012 and we are currently conducting detailed reserves evaluation. In addition, we are participating as non-operator in gas production activities in Block SK8 and also as non-operator in exploration activities in Block PM308A offshore Peninsular Malaysia.

We consider Malaysia as one of our important core countries and will seek to increase our activities and presence in Malaysia.

Source: JX Nippon Oil & Gas Exploration

Lundin Malaysia’s Bertam Oil development

Petronas has approved the Bertam oil field development plan for Lundin Malaysia BV, the first Lundin-operated development project in Malaysia.

The development plan, which Lundin Malaysia submitted in July, looks toward drilling in 2014 and a production start in 2015. Proved and probable reserves total 17 million bbl of oil, and peak production is pegged at 15,000 b/d.

Lundin Malaysia will develop Bertam using a 20-slot wellhead platform in 76 m of water on the 6,126 sq km PM 307 block adjacent to a spread-moored floating production, storage, and offloading vessel. The subsurface development concept consists of 14 horizontal production wells completed with electric submersible pumps.

Gross capital investment associated with the development is $400 million excluding costs related to the FPSO. Working interests are Lundin Malaysia 75% and Petronas Carigali 25%.

News Source : http://www.ogj.com/articles/2013/10/petronas-okays-lundin-malaysia-s-bertam-oil-development.html