ExxonMobil produces first oil from Malaysian satellite platform

Petroleum News Alaska Staff

Exxon Mobil Corp. said Dec. 10 that that oil and gas production has begun from the first of five new satellite platforms recently installed under the satellite fields development project, offshore Malaysia.

ExxonMobil said that the project, the first of its kind in Malaysia, represents a significant step forward in the development of small oil and gas fields. With smaller reserves, the new approach was the enabling factor in making production from these fields economic.

“By simultaneously constructing these satellite platforms, sequentially installing them, and then using the same drilling rig, we are able to capitalize on time efficiencies and economies of scale,” said Terry Koonce, president of ExxonMobil Production Co.

About 90 million barrels of oil from six fields will be produced from the five platforms. The total project development cost is estimated at US$240 million, inclusive of drilling costs. Peak production from all five platforms is expected to total 40,000 barrels of oil per day and 50 million cubic feet of gas per day.

ExxonMobil Exploration and Production Malaysia Inc., a subsidiary of Exxon Mobil Corporation, is the operator for the project. It is developing the fields on behalf of its joint venture with Petronas Carigali Sdn Bhd, a subsidiary of Malaysian national oil company, Petronas. Under various production sharing contracts, ExxonMobil has a working interest of between 78 percent and 80 percent in the fields.