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| World's Biggest Offshore Enhanced Oil Recovery (EOR) Project |
KUALA LUMPUR: Oil giants Petronas and Shell will invest US$12 billion (RM37.8 billion) to develop the world’s biggest offshore enhanced oil recovery (EOR) project in Malaysia.
Work to squeeze out extra oil from existing fields will take some 30 years and extend the life of these oil fields beyond 2040. This will help to arrest Malaysia’s declining oil production. Crude oil production is forecast to fall 6 per cent to 600,000 barrels per day this year, according to estimates from the latest Economic Report.
“This development will positively impact Malaysia’s oil reserves and benefit the country as a whole,” Shell Malaysia chairman Anuar Taib said in a statement.
Petroliam Nasional Bhd (Petronas) and Royal Dutch Shell yesterday signed a heads of agreement (HOA) for two 30-year production sharing contracts (PSCs). The PSCs are for the Baram Delta oil fields, located offshore Sarawak and the North Sabah development areas offshore Sabah. They could recover another 756 million baralongrels of oil reserves or 90,000 to 100,000 bpd.
Apart from being the world’s biggest off-shore EOR project on a combined basis, the technology used in the North Sabah fields could lead to the world’s first offshore alkaline surfactant polymer EOR project using horizontal wells.
Under the proposed PSCs signed yesterday, field operator Petronas Carigali will hold a 60 per cent stake in the Baram Delta EOR PSC, and the remaining 40 per cent will be held by Sarawak Shell Bhd. For the North Sabah EOR PSC, Petronas Carigali will hold a 50 per cent stake, followedby Sabah Shell Petroleum Company Ltd (25 per cent) and field perator Shell Sabah Selatan Sdn Bhd holding the remaining 25 per cent.
“This development will positively impact Malaysia’s oil reserves and benefit the country as a whole,” Shell Malaysia chairman Anuar Taib said in a statement.
Petroliam Nasional Bhd (Petronas) and Royal Dutch Shell yesterday signed a heads of agreement (HOA) for two 30-year production sharing contracts (PSCs). The PSCs are for the Baram Delta oil fields, located offshore Sarawak and the North Sabah development areas offshore Sabah. They could recover another 756 million baralongrels of oil reserves or 90,000 to 100,000 bpd.
Apart from being the world’s biggest off-shore EOR project on a combined basis, the technology used in the North Sabah fields could lead to the world’s first offshore alkaline surfactant polymer EOR project using horizontal wells.
Under the proposed PSCs signed yesterday, field operator Petronas Carigali will hold a 60 per cent stake in the Baram Delta EOR PSC, and the remaining 40 per cent will be held by Sarawak Shell Bhd. For the North Sabah EOR PSC, Petronas Carigali will hold a 50 per cent stake, followedby Sabah Shell Petroleum Company Ltd (25 per cent) and field perator Shell Sabah Selatan Sdn Bhd holding the remaining 25 per cent.
The partners will also carry out joint research and development in EOR technology under a separate agreement.
At the signing, Petronas was represented by its president and chief executive offi cer Datuk Shamsul Azhar Abbas, while Shell was represented by its chief executive officer Peter Voser.
“The agreement also provides an opportunity to work together with Petronas on building local knowledge and capabilities in enhancing oil recovery,” Voser said. -Business Times
“The agreement also provides an opportunity to work together with Petronas on building local knowledge and capabilities in enhancing oil recovery,” Voser said. -Business Times
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