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.
