Singapore (Platts)--15Nov2012/340 am EST/840 GMT

Hess Exploration and Production Malaysia, a subsidiary of US-based Hess Corp., has secured a floating, production, storage and offloading vessel for the North Malay Basin gas project located offshore Malaysia that it is developing with Petronas Carigali.

Malaysia-based Larizz Petroleum Services, a subsidiary of Perisai Petroleum Teknologi, will provide Hess with the FPSO and also related operation and maintenance services for the facility under a $272.1 million contract, Perisai said Wednesday in a statement to Bursa Malaysia.

Larizz will get the FPSO Lewek Arunothai from Singapore-based FPSO and offshore construction contractor EOC Limited, Perisai said.

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The terms of the contract provide for a firm charter duration of three years, with extension options of up to three years, it said, adding that the FPSO is trageted to be on-station from mid-2013, and will be used to support early production activities.

Hess and Petronas Carigali signed production sharing contracts for the North Malay Basin project -- which includes blocks PM302, PM325, and PM326B -- in June.

The project is expected to be implemented in two phases: the early production system phase, to be followed by the full field development phase, Petronas said in June.

First gas under the EPS phase is targeted for mid-2013 at 100,000 Mcf/d, while the FFD phase will deliver about 300,000 Mcf/d from the second quarter of 2015.

About $5.2 billion will be invested in the North Malay Basin project through its phased development over the next five years, Petronas said at the time, adding that the project will commercialize around 1.7 Tcf of gas reserves.

--Mriganka Jaipuriyar, mriganka@platts.com --Edited by Robert DiNardo, robert_dinardo@platts.com

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