Newfield signs PSC offshore Malaysia

Ray Tyson

Petroleum News Houston correspondent

Subsidiaries of U.S.-based independent Newfield Exploration have signed two production sharing contracts offshore Malaysia in partnership with Petronas Carigali, the exploration and production subsidiary of Malaysia’s state-owned Petronas.

“This transaction establishes a new international growth area for Newfield,” David Trice, Newfield’s chief executive officer, said May 25.

The production sharing contracts involve to two blocks — PM 318 and deepwater Block 2C. Petronas Carigali will operate the production sharing contract for PM 318, which consists of about 400,000 acres offshore Peninsular Malaysia. Newfield has a 50 percent interest in PM 318. The deepwater Block 2C covers more than 1.1 million acres offshore Sarawak and is operated by Newfield with a 60 percent interest.

The partners said they will acquire and evaluate 3-D seismic data over the next year with the hope of drilling during 2005.

“These blocks contain an interesting portfolio of prospects and leads ranging from low risk, moderate potential to high risk, high potential exposure,” Trice said.