Hess Corp. forged agreements with Malaysia’s Petronas to enlarge the PM302 contract area offshore Peninsular Malaysia and create the North Malay basin integrated gas development project.
Hess will have a 50% working interest and become operator of the project, expected to add a discovered net resource of 80-100 million bbl of oil equivalent to Hess’ portfolio. Production is to start in 2013 at a gross 80 MMcfd and increase in 2015 to 250 MMcfd.
The investment required of Hess is a net $250 million in 2012 and an estimated $400 million/year in 2013-15.
The agreements include amendments to the existing Hess-operated PM302 production sharing contract that enlarge the contract area to include nine discovered gas fields.
PETRONAS also awarded Hess and Petronas Carigali the PM325 and PM326B blocks to be explored, appraised, and developed.