Page 8 - AsianOil Week 35 2021

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Petronas awards two

marginal field contracts

PROJECTS & MALAYSIA’S state-owned Petronas has
COMPANIES awarded two marginal field contracts to Rex
International Holding and Duta Marine for the
offshore Rhu-Ara and Diwangsa clusters.
Petronas said on August 30 that the signing of
the new small field asset (SFA) production-shar-
ing contracts (PSCs) marked Rex’s first foray into
the country’s upstream. It noted that Rex, which
holds a 95% participating interest in both PSCs,
had significant operating experience and exper-
tise in developing small oilfields in the Middle
East as well as participating in joint ventures in
the North Sea.
Rhu-Ara, which consists of the Rhu and Ara
fields, lies within the Penyu Basin around 150
km off the coast of oil centre Kerteh, Tereng-
ganu. The PSC holds total estimated recoverable
reserves of 12.7mn barrels.
Diwangsa, meanwhile, lies in the north-west-
ern side of the Malay Basin and is comprised of
the Diwangsa, Bubu, Korbu and Lerek fields. The
cluster has total estimated recoverable reserves
of 10.7mn barrels. round by applicants but will have a minimum
Petronas said both PSCs were ready to be threshold.
developed under terms that incorporated a “sim- The contractor, meanwhile, is expected to
plified fiscal model and governance process”. cover all of its outgoings from its share of the rev-
The major introduced new terms for SFA enue. These include capital expenditure, opera-
PSCs in 2020 in a bid to attract investors to the tional expenditure and abandonment costs.
country’s marginal plays. SFA PSCs are split into Commenting on Rex’s entry into the Malay-
three stages – a pre-development phase of up to sian upstream, Petronas said: “We welcome new
two years, an up to two-year development phase players who can deliver innovative solutions to
and then an up to 10-year production period. ensure the lowest total life cycle cost in devel-
When a field enters production, the project’s oping the discovered resources opportunities
revenue is split between Petronas and the con- available in Malaysia waters. We are pleased to
tractor after a 10% royalty cash payment has see that the SFA terms have become more attrac-
been made to the government. Petronas’ share, tive to the investors, thus validating the efforts
which is a fixed percentage during the life of taken to turn Malaysia into a growth hub for the
the contact, will be determined during the bid investors.”™

Shell takes FID on Malaysian gas field

PROJECTS & ROYAL Dutch Shell has reached a final invest- The Timi field is located around 200 km off
COMPANIES ment decision (FID) on the Timi natural gas the coast of Sarawak and will feature Sarawak
field offshore Malaysia, the super-major said Shell Berhad’s (SSB) first wellhead platform in
this week. Malaysia that is powered by a solar and wind
The company said on August 30 that it hybrid power system. Shell said the unmanned
intended to drill two wells at the sweet gas field, platform was around 60% lighter than a conven-
which was discovered in 2018 in the SK318 pro- tional Tender Assisted Drilling (TAD) unit and
duction-sharing contract (PSC). attributed the result to a mixture of engineering
Production is designed to peak at 50,000 bar- expertise, early market engagement and compet-
rels of oil equivalent per day (boepd), with gas itive scoping.
to be pumped to the F23 production hub via an Shell upstream director Wael Sawan said:
80-km pipeline. “Timi, which is powered by a solar and wind

P8 www. NEWSBASE .com Week 35 02•September•2021