Newfield signs PSC for PM 323 off Malaysia

By OGJ editors

HOUSTON, June 16 -- A Newfield Exploration Co. subsidiary has signed a production-sharing contract (PSC) with Petronas Carigali Sdn. Bhd. of Malaysia for the PM 323 area off Malaysia. The block, which covers 335,000 acres in water averaging 200 ft deep, is in the Malay basin 185 miles off Kemaman, Terengganu.

Newfield will invest $160 million in PM 323 over the next 3 years, acquiring 600 sq km of 3D seismic data, drilling five exploration and appraisal wells, and immediately developing East Belumut and Chermingat oil fields—two of seven discoveries on the block. The fields are expected to produce 15,000 b/d of oil by early 2008. Operator Newfield holds a 60% interest in PM 232, and Petronas Carigali holds 40%.

PM 232 is the third PSC Newfield has signed with Petronas Carigali (OGJ Online, May 27, 2004).

In July, the partners will begin drilling the first of six wells on PM 318 on Peninsular Malaysia, where current gross production is 10,000 b/d of oil. Three wells will develop Abu field, expected to be producing 12,000 b/d of oil in early 2007. The other three wells will explore and appraise an existing discovery. Petronas Carigali operates PM 318 in a 50-50% partnership with Newfield.

Newfield has secured a semisubmersible to drill the first of two wildcats in 2006 on Block 2C off Sarawak. It operates and holds a 60% interest in the 1.2-million-acre block.

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