CALGARY, Canada – Talisman Energy (TSX:TLM;NYSE:TLM) and Petronas have received a new production sharing contract (PSC) for further development of the Kinabalu oil fields offshore Sabah, Malaysia.
These comprise the Shell-operated Kinabalu Main, Kinabalu East, and Kinabalu Far East fields. The current PSC is due to expire in late December.
The new permit is the first of “progressive volume-based” PSC issued in Malaysia, designed to incentivize contractors to improve oil recovery and increase production from mature oil fields.
Talisman will operate with a 60% interest, the remainder held by Petronas. They plan to invest more than $1 billion to lift recovery and production over the life of the PSC. The PSC is also adjacent to the Talisman-operated Sabah exploration block.