Hess secures FPSO for North Malay Basin project offshore Malaysia
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
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
--Mriganka Jaipuriyar, firstname.lastname@example.org
--Edited by Robert DiNardo, email@example.com