Esso Production Malaysia Inc. plans to install three more production platforms off Terengganu, Malaysia, to sustain its current Malaysian production of 360,000 b/d.
The three platforms will be installed in 1992 at a cost of $180 million in the production sharing area covered by Esso's 1976 contract with state oil company Petroliam Nasional Bhd. (Petronas).
The additional platforms, Tabu B, Seligi C, and Seligi E, will be unmanned satellite platforms required for further development of Esso's Tabu and Seligi fields. Tabu field started up in 1986, and Seligi field, one of Malaysia's largest oil fields, started up in 1988.
Fabrication contracts have not been awarded, but Esso said it has in recent years increasingly awarded contracts to Malaysian companies to support development of the local fabrication industry, provide employment opportunities, and promote technology transfer.
Esso currently operates 26 platforms on the production sharing contract area.
Three more platforms are to be installed this year, and the 1992 installations will bring Esso's total to 32 operated platforms.
Additional Esso interests in the region include a commitment to supply gas resources for Malaysia's Peninsular Gas Utilization project (OGJ, Aug. 13, 1990, p. 26) and operations in two other production sharing contract areas, PM-5 and PM-8.
The company began upstream operations in Malaysia in 1965 and has spent more than $5 billion there. Current spending exceeds $500 million/year, which is expected to increase as operations expand.
Copyright 1991 Oil & Gas Journal. All Rights Reserved.
