ExxonMobil Exploration and Production Malaysia Inc. (EMEPMI), a subsidiary of Exxon Mobil Corporation, recently awarded Crest Petroleum Bhd’s wholly-owned subsidiary, TL Offshore Sdn Bhd, a RM178 million contract for offshore installation services during 2004 through 2006. (US$1=RM3.8).

The services to be provided include the installation of two satellite crude oil production platforms — Irong Barat C and Guntong F, along with associated pipelines, and the Guntong E gas processing hub.

EMEPMI Chairman Rob Fisher said ExxonMobil is continuing to develop the Guntong and Irong Barat fields using world class technology.

“Building on the success of our Satellite Fields Development (SFD) project, we are able to incorporate advances in ExxonMobil technology and efficiencies to lower costs and exploit previously unrecoverable resources. These projects demonstrate our commitment to efficiently develop Malaysia’s oil and gas resources while at the same time achieve maximum economic recovery from mature producing areas,” he said.

Guntong F and Irong Barat C are being developed by EMEPMI under the terms of the 1995 Production Sharing Contract (PSC) with Malaysian state oil and gas company Petronas. EMEPMI has 78% of the working interest in the 1995 PSC with Petronas Carigali Sdn Bhd (PCSB) holding the remaining interest.

Fabrication contracts worth RM 51 million for Guntong F and Irong Barat C jackets and topsides were awarded to Sime SembCorp Engineering Sdn Bhd and Ramunia Fabricators Sdn Bhd, respectively, in October 2003.

EMEPMI is developing Guntong F and Irong Barat C based on the SFD generic design concept that has been successfully implemented in eight separate developments to date offshore Peninsular Malaysia.

To optimise development cost, Guntong F and Irong Barat C were designed as unmanned minimum facility platforms supported by lightweight tripod jackets. Each platform will have a capacity for 16 wells to be drilled from an Independent Leg Cantilever Jack-up rig. Guntong F is anticipated to produce 20,000 barrels per day (b/d) of crude oil and 40 million standard cubic feet per day (mscfd) of gas at its peak. Irong Barat C is anticipated to peak near 20,000 bd.

Both the Guntong F and Irong Barat C platforms will be installed in the third quarter of 2004. First oil production from the platforms is expected in the first quarter of 2005.

EMEPMI is also developing the Guntong E gas compression hub scheduled for installation in 2005 with start up in 2006. Guntong E is being developed under a Gas Production Sharing Contract (GPSC) with Petronas in which EMEPMI has 50% working interest with PCSB.

Guntong E will consist of an eight-leg jacket and modules for gas receiving, separation, dehydration and compression. Three large turbine-driven compressor trains will handle 540 million cubic feet of gas and 30 thousand barrels of condensate per day.

The Guntong E development is the first phase of the Guntong Hub development. Fabrication contracts worth RM 300 million for the Guntong E jacket and topsides were signed with Ramunia Fabricators Sdn Bhd and Sime SembCorp Engineering Sdn Bhd, respectively on April 12, 2004.

EMEPMI, a subsidiary of Exxon Mobil Corporation, is the largest oil producer in Malaysia and the largest supplier of gas to Peninsular Malaysia. In 2003, EMEPMI produced approximately 270,000 barrels of liquids and 1.5 billion cubic feet of gas per day.