Malaysia's crude oil and condensate production will peak at 670,000 b/d in 1993 from its current level of 590,000 b/d, predicts County NatWest Woodmac, Edinburgh, Scotland.
Production will then decline to about 600,000 b/d and, depending on how the government's depletion policy is implemented, could remain at that level until 2000.
Exploratory drilling will remain at about 30 wells/year during the next 5 years, says Woodmac's Far East Report.
Malaysian gas production will rise from 1.26 bcfd to a little less than 3 bcfd by the turn of the century. Most of the increase will result from gas sales buildup under phase two of the Peninsular Gas Utilization Project and increased sales through the Bintulu LNG complex.
SHELL'S SPENDING
Separately, Shell Malaysia disclosed plans to step up its spending program to $5 billion Malaysian ($1.85 billion U.S.) in the upstream sector during the next 5 years. That compares with capital spending of $8 billion ($2.96 billion) during the past 10 years.
About $750 million ($277.8 million) will be spent during the 5 year period for exploration and appraisal on the SB1 contract area in Sabah and the SK5 area in Sarawak.
Shell said if wildcatting is successful, about 40 wildcats and appraisal wells will be drilled in 1990-92 at a cost of more than $500 million ($185 million). Shell also plans a total of 4,500 km of 2D and 1,350 km of 3D seismic surveys in 1990 and beyond.
About $2 billion ($740.7 million) has been allocated for the Baram Delta gas gathering project and on boosting recovery from older fields.
Shell's drilling activity in 1989 rose sharply. The company now has seven rigs and continues to assess proposals for more acreage.
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