Talisman-Petronas to inherit Malaysia Kinabalu oil fields

By OGJ editors

Petroleum Nasional Bhd. will assign operatorship of the Kinabalu oil fields offshore Sabah at the end of 2012 to a combine of Talisman Malaysia Ltd. and Petronas Carigali Sdn. Bhd., who will invest more than $1 billion on production and enhanced oil recovery.

A production-sharing contract with current operator Shell expires in late December, and a new one will be signed that gives Talisman 60% interest and Petronas Carigali 40%.

The mature Kinabalu Main, Kinabalu East, and Kinabalu Far East fields have "significant development upside," Talisman said without giving figures. The PSC is adjacent to the Talisman-operated Sabah exploration block.

Talisman said the agreement is the first of a new "progressive volume-based" PSC to be awarded by Petronas that was specifically designed to incentivize contractors to improve oil recovery and increase production from mature oil fields.

Did You Like this Article? Get All the Energy Industry News Delivered to Your Inbox

Subscribe to an email newsletter today at no cost and receive the latest news and information.

 Subscribe Now

Whitepapers

Maximizing Operational Excellence

In a recent survey conducted by PennEnergy Research, 70% of surveyed energy industry professional...

Leveraging the Power of Information in the Energy Industry

Information Governance is about more than compliance. It’s about using your information to drive ...

Reduce Engineering Project Complexity

Engineering document management presents unique and complex challenges. A solution based in Enter...

Revolutionizing Asset Management in the Electric Power Industry

With the arrival of the Industrial Internet of Things, data is growing and becoming more accessib...