Roc Oil Co. Ltd. (ROC) reports that BC Petroleum Sdn Bhd (BCP), the 48%-owned company incorporated to operate and manage the Balai Cluster risk service contract (RSC), has received approval of the field development plan (FDP) from Petronas for the initial phase in the development of the Bentara oil field within the Balai Cluster offshore Sarawak, Malaysia.
Phase I of the Bentara field development will utilize the existing platform and two wells, producing from both Bentara-2 and Bentara-3 through the EPV Balai Mutiara. The EPV will initially undertake production processing in the same configuration used during the extended well testing phase; however, both wells will be produced simultaneously.
Production is planned to begin during the second quarter of 2014. The field is expected to produce at an average rate of approximately 2,000-3,000 barrels of oil per day (bopd) gross during the period, where weather and sea conditions allow the EPV connection to the platform to be maintained.
The FDP requires minimal further investment with all cost expected to be funded from cash flows. ROC, as a shareholder of BCP, receives cost recovery for past expenditure, and this is currently anticipated to occur over the second half of 2014 to the end of 2015. The bank funding in BCP of $162 million will be repaid in full by the end of 2014.
Bentara is one of the four Balai Cluster oil and gas fields located offshore East Malaysia. The field is located approximately 108 miles (175 kilometers) northwest of Bintulu. Water depth over the field varies from 196 to 229 feet (60 to 70 meters).