Petroliam Nasional Bhd (Petronas) has as inked a new Production Sharing Contract PSC with Talisman Malaysia Ltd and Petronas Carigali Sdn Bhd for recovery of crude oil from the Kinabalu Fields located offshore Sabah, East Malaysia.
In a statement Monday, Petronas said the PSC was the first awarded under the new, innovative Progressive Volume-Based (PVB) fiscal terms designed by Petronas to offer value-added incentives for the development and production of matured oil fields in Malaysia.
“In particular, the PVB terms provide progressive profit sharing to provide incentive to contractors to improve oil recovery and increase production as the risks of developing and producing from matured fields become progressively higher over the lifetime of the field,” it said.
Petronas said that under the terms of the PSC, both Talisman Malaysia and Petronas Carigali were committed to investing over US$1 billion towards various activities in the contract area, including achieving early production gains, improving operational efficiency and addressing subsurface issues.
“Additionally, the two partners are also to focus on field redevelopment efforts with a view to realising improved oil recovery potential as well as committing to an enhanced oil recovery pilot initiative,” it said.
The national oil company said Talisman Malaysia would be the operator of the PSC area with a 60% participating interest and is expected to leverage on its experience and expertise in operating matured fields worldwide.
