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Oil discovered in Malaysian state

Publication Date : 31-10-2012

 

Oil has been discovered off the shores of Malaysian state of Pahang, bringing the estimated Bertam reserves to 64 million barrels.

Prime Minister Najib Tun Razak said Petronas Carigali Sdn Bhd and Lundin Oil jointly made the discovery under a production sharing contract at Block PM 307 of the Bertam oilfield.

The Prime Minister added that the new oilfield lay 160 kilometres off the shores of Peninsular Malaysia, opposite Pahang, at a depth of 76m.

PM 307 PSC is operated by Lundin Malaysia, which has a 75 per cent interest, with Petronas holding the remaining equity.

News agency Bernama quoted Najib as saying: “This (find) is very significant because we have never discovered oil in a commercial quantity at the Penyu Basin. This is a major breakthrough."

“With the discovery, the Bertam oilfield is estimated to have oil reserves of 64 million barrels,” the PM said after chairing the Biotechnology Implementation Council meeting in Putrajay.

Based on the findings of commercial and technical feasibility studies, Najib said, crude oil production would begin at the oilfield in the third quarter of 2014 with a projected output of between 17,500 and 20,000 barrels per day.

“This discovery proves there is oil and gas at the southern region of the Malay Basin towards the Penyu Basin," he added.

“The oilfield is located on the continental shelf which is under the jurisdiction of the federal government.”

Najib said Pahang was expected to receive a special payment of 100 million ringgit (US$32.8 million) a year once production begins.

“This is our policy to distribute oil wealth with 5 per cent cash payment to Pahang,” he added.

Meanwhile, Ramlan A. Malek, Petronas vice-president for exploration and production and petroleum management, said the commercial and technical feasibility studies were expected to be completed in the second quarter of next year.

He also said this was the first oil discovery in Pahang.

In Kuantan, Chief Minister Adnan Yaakob said the 100 million ringgit special payment would be used strictly for development to benefit the people.

“We will use it (the money) to fund small projects for the rakyat and to help needy folk,” Adnan added.

 

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