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Saturday 16 July 2011

UK's Petrofac to accelerate West Desaru output

Kuala Lumpur: Petrofac Ltd, Britain's oil and gas services provider, expects to pump as much as 60,000 barrels of oil per day (bopd) from its Block PM304 offshore Peninsular Malaysia after it pledged to quicken its work.

Read more: UK's Petrofac to accelerate West Desaru output http://www.btimes.com.my/articles/petmou/Article/#ixzz1SEDuMY1d

Petrofac and Petroliam Nasional Bhd (Petronas) signed two memorandums of understanding (MoUs) in London on Wednesday, of which one of them is to accelerate production from Block PM304. Petrofac said this will be done by introducing an early production system at its West Desaru block. It will also use a mobile offshore production unit or Mopu, which is in the process of being purchased. "This approach is expected to bring forward first oil production from West Desaru into the fourth quarter of 2012," Petrofac said in a statement posted on its website. It did not mention the original first oil production date. At the same time, Petrofac said the second phase development of the Cendor block is set to start in the second quarter of 2013, bringing the overall production capacity of Block PM304 to around 60,000 bopd. Petrofac issued and posted the statement on its website after the signing of the two MoUs with Petronas, witnessed by Prime Minister Datuk Seri Najib Razak, who is on an official visit to the UK. According to the statement, the first MoU records the undertaking by Petrofac and Petronas to accelerate production from Block PM304, with a third phase of development. Petrofac owns a 30 per cent equity share and is the operator of PM304, which includes the Cendor and West Desaru fault blocks. At the signing, Petronas was represented by its president and chief executive officer (CEO) Datuk Shamsul Azhar Abbas, while Petrofac was by its group CEO Ayman Asfari. Petrofac said the second MoU outlines its plan to collaborate in the areas of competency development, capacity building and education activities. Petrofac has been working with Petronas since 2004 when it began the development of Block PM304 with the Cendor block.

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