TEXACO PLANS EXPLORATION ON TRACT OFF EASTERN MALAYSIA

Texaco Exploration Penyu Inc. plans an exploration program that could involve outlays of $25.25 million in a 5 year campaign in the South China Sea off Malaysia. Site will be on Block PM 14, acquired in a production sharing contract with Malaysia's state owned Petronas and Petronas subsidiary Petronas Carigali Sdn. Bhd.

April 9, 1990

Texaco Exploration Penyu Inc. plans an exploration program that could involve outlays of $25.25 million in a 5 year campaign in the South China Sea off Malaysia.

Site will be on Block PM 14, acquired in a production sharing contract with Malaysia's state owned Petronas and Petronas subsidiary Petronas Carigali Sdn. Bhd.

The contract at minimum calls for spending of $19.7 million in the first 4 years to acquire and process 1,864 line miles of seismic data, reprocess 1,864 line miles of old seismic data, and drill six wildcats. The fifth year minimum requirements are spending of $5.55 million and drilling of two wildcats.

Block PM 14 covers 6,711 sq miles in 32.8-229.7 ft of water. It is bounded on the north by Block PM 12, on the east by the Malaysia-Indonesia boundary, and on the south by the Singapore platform.

The tract lies in the Penyu basin, a western extension of Indonesia's oil and gas productive West Natuna basin.

The Texaco Inc. unit's contract is the first production sharing agreement Malaysia has signed this year. It is the 23rd signed under terms introduced in 1985.