GAS FIELDS DUE DEVELOPMENT OFF MALAYSIA

Royal Dutch/Shell Group and Malaysia's Petronas have reached an agreement in principle for a 50-50 venture to develop 11 gas fields off Sarawak at a cost of $2.26 billion. Most of the gas will help feed Malaysia LNG Sdn. Bhd.'s Bintulu, Sarawak, gas liquefaction plant, scheduled for a doubling of capacity to 15.8 million metric tons/year under contracts let to M.W. Kellogg Co., Houston, and JGC Corp., Tokyo (OGJ, May 4, p. 48).

May 11, 1992

Royal Dutch/Shell Group and Malaysia's Petronas have reached an agreement in principle for a 50-50 venture to develop 11 gas fields off Sarawak at a cost of $2.26 billion.

Most of the gas will help feed Malaysia LNG Sdn. Bhd.'s Bintulu, Sarawak, gas liquefaction plant, scheduled for a doubling of capacity to 15.8 million metric tons/year under contracts let to M.W. Kellogg Co., Houston, and JGC Corp., Tokyo (OGJ, May 4, p. 48).

A development plan for the 11 fields, with Shell as operator, has been completed and submitted to Petronas. By 1998, the fields are to produce a combined 1.13 bcfd, OPEC News Agency reported.

The project includes construction of offshore complexes and pipelines. The first phase of the project is estimated to cost about $950,000.