ConocoPhillips signs PSC with Petronas

Petroleum News

ConocoPhillips said March 2 that a Petronas Carigali-ConocoPhillips joint venture has signed a production sharing contract with Petronas, the Malaysian national oil company, for the appraisal and development of the Kebabangan oil field.

The field, in waters depths of 400 to 800 feet off the northwest coast of Sabah, Malaysia, was discovered in 1994 when an initial exploration well encountered a thick gas column with a thin oil rim. A 2002 appraisal well penetrated gas as well as an oil column in several reservoir intervals and well tests showed the oil to be light and of high quality. An additional appraisal phase is needed to determine the extent and commerciality of the oil reserves.

“We are excited about our growing position in Malaysia and the strong partnership we have built with Petronas,” said Ryan Lance, president of Asia Pacific for ConocoPhillips.

ConocoPhillips and Petronas Carigali announced deepwater Malaysian discoveries offshore Sabah in 2003 and 2004; Shell also holds an interest in those discoveries.

ConocoPhillips (East Malaysia) Ltd. holds a 40 percent interest in the Kebabangan field and Petronas Carigali holds 50 percent.