(EnergyAsia, February 17 2014, Monday) — In Malaysia, ExxonMobil has started up its new Damar gas field following on an earlier announcement by state-owned energy firm Petronas that it is producing oil from a cluster of offshore fields.

The US major said subsidiary ExxonMobil Exploration and Production Malaysia Inc and equal joint-venture partner, Petronas Carigali Sdn Bhd, will develop a total of 16 wells for the platform located off the east coast of Peninsular Malaysia.

The Damar field, which will produce 200 million cubic feet of gas per day at peak, was developed under a gas production sharing contract between ExxonMobil, Petronas Carigali and Petronas, with the US firm holding the operator’s role.

Petronas Carigali is the fully-owned upstream subsidiary of the state firm.

“Damar will help meet increasing natural gas demand in Malaysia. It also represents one of several projects that will add to ExxonMobil’s global production in the coming years as we remain focused on delivering profitable volumes over the long term,” said Neil W. Duffin, president of ExxonMobil Development Company.
ExxonMobil, which started up gas production at the nearby offshore Telok last March, said the two projects provide additional gas supplies to help meet Malaysia’s power and industrial needs.

Separately, Petronas said it began producing a total of 10,000 b/d of crude oil from the Kapal, Banang and Meranti cluster fields located off the coast of peninsular Malaysia last December. At their peak, the fields will yield a total of 13,000 b/d.

KBM is being jointly developed by Coastal Energy of Houston and Malaysian oil services company Petra Energy under a risk sharing contract (RSC), the third to be applied following the Balai cluster and the Berentai fields, Petronas said.

The partners began developing KBM in mid-2012 as part of an eight-year project.

In an attempt to maintain domestic oil production, Petronas has identified and earmarked 106 marginal fields which less than 30 million barrels of oil equivalent reserves each for development by smaller companies. The fields hold a combined 580 million boe.