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