Roc farms in to PSC offshore Malaysia

Fresh from its sale of the Basker-Manta-Gummy (BMG) fields in Bass Strait, Roc Oil Co. Ltd. has farmed in to a production-sharing contract offshore Malaysia.

The Malaysian fields—known as D35, D21, and J4—are producing a total of 10,000 b/d of oil and gas sales of about 17 MMcfd. They lie in 50 m of water and are currently operated 100% by Petronas Carigali. Roc has farmed in for a 50% interest.

The three fields are the subject of a significant brownfield redevelopment. Phase 1, to begin shortly, is designed to increase oil production rate and enhance production potential via a series of intervention and debottlenecking projects.

Phase 2 enhanced oil recovery project is subject to a field development plan decision following completion of a series of studies designed to prove the reservoirs’ responses to repressurisation and tertiary recovery techniques. The studies are being carried out this year with a development plan approval expected in 2015.

Phase 1 has a minimum work commitment of $70 million and an estimated total capital investment requirement of as much as $250 million.

Phase 2 has a minimum work commitment of $50 million.

The terms of the farm-in are that Roc will pay $25 million plus a carry with a 50% participating interest of $80 million for the development spread over Phases 1 and 2.

Roc personnel will join Petronas personnel in the project team. Roc has been appointed project development manager responsible for subsurface management, well engineering, new facilities projects and project execution.

Petronas will retain operatorship as well as responsibility for operation and maintenance of the existing facilities.