Commodities, Economy  |  FEBRUARY 19, 2013 3:39AM

Offshore blocks have 8 bln barrels of oil equivalent

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Malaysia has 20 deepwater blocks offshore Sabah and Sarawak which are estimated to hold up to eight billion barrels of oil equivalent, Petronas President and Chief Executive Officer Tan Sri Shamsul Azhar
Abbas said.

Of the 20, 13 have already been awarded under production-sharing contracts to various oil and gas industry players, he said when asked on the opportunities for exploration and production in deepwater plays in Malaysia in an article entitled “National Treasure” contained in the maiden issue of “The Oil and Gas Year Malaysia 2013″ book launched here today.

He said that todate, 38 exploration wells have been drilled in the deepwater
areas with 14 discoveries made.

“We are promoting the remaining seven deepwater blocks among deepwater players, including the majors and international oil companies while also enhancing the fiscal terms of these blocks.”

Turning to gas, he said that in order to maintain Malaysia’s position as a major global liquefied natural Gas (LNG) player, Petronas is embarking on several projects both domestically and internationally.

“On the domestic front, we are expanding our existing LNG complex in Bintulu through the Train 9 project. Once completed, this additional train will increase the production capacity of the LNG complex to 29.3 million tonnes per year from 25.7 million tonnes currently.

“On the international front, Petronas is aggressively growing its unconventional gas to LNG portfolio.

“Our Gladstone project in Queensland Australia is progressing well and when completed, it will convert coal bed methane into LNG for export,” he said.

Petronas also recently announced an agreement to acquire Progress Energy Resources, a listed Canadian natural gas company which will give the national oil corporation access to significant long-term gas resources in a relatively stable location.


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