Petronas inks three oil contracts

CONTRACT   OIL & GAS   PETRONAS

Malaysia - Oil company Petronas has inked three production sharing contracts for the implementation of the North Malay Basin project.

Located offshore Peninsular Malaysia, the contracts are for offshore Block PM302, PM325 and PM326B, in a 50:50 equity split between Petronas Carigali and Hess Exploration and Production Malaysia.

As part of the Malaysian oil company's efforts to enhance the security of gas supply in the country, the integrated gas development will see the development and commercialisation of nine gas fields, and the development of a new gas gathering, processing and transportation hub.

Implemented in two phases, approximately US$5.2 billion (SG$6.6 billion) will be invested over the next five years, commercialising about 1.7 standard trillion cubic feet of gas reserves in the area.

Greg Hill, president of worldwide exploration and production for Hess Corporation said the contract continues its strategic partnership with Petronas.

"The North Malay Basin Integrated Gas Development Project is consistent with our strategy to invest in long life, low risk reserves with attractive returns and exploration upside," he added.

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