Newfield sees great potential in Malaysia
New Straits Times(BizNews)
26 February 2007

NEWFIELD Exploration Company (Newfield), a US-based oil and gas company will invest some US$200 million (RM704 million) under its international programme for this year, of which 75 per cent is dedicated for the development of its fields in Malaysia.

Its investor relations officer Penny McKnight said the company plans to drill between 10 and 12 exploration wells at its oil and gas blocks, particularly located offshore Peninsular Malaysia during the period.

“As of last year, we had interest in 15 net and gross productive wells in the area.

“We anticipate about the same level of company activity and investment for this year as in 2006,” she told Business Times in an e-mail.

Through three production sharing contracts, Newfield owns interests in three blocks offshore Malaysia, namely Block PM318 and PM323, both located in shallow water offshore Peninsular Malaysia, and a deepwater Block 2C offshore Sarawak.

“We believe Malaysia has great potential and promise in regard to the exploration and production of hydrocarbon resources.

“It is a very important part of Newfield’s international portfolio,” Penny said.

Elaborating on Newfield’s expansion plan for Malaysia, Penny said the company activities for this year will focus on bringing its Abu field, which is located on Block PM318, online.

However, she said development continues at its Puteri field on Block PM318 and the East Belumut and Chermingat fields on Block PM323.

“Puteri will be on production in late 2007 or early 2008 and will be produced through existing facilities.

“The East Belumut and Chermingat fields, which are Newfield-operated are expected to be online next year,” she said.

Newfield also owns a 50 per cent non-operated interest in Block PM318 and a 60 per cent operated interest in Block PM323.

Block PM318 covers about 165,600ha and had a gross production of about 4,000 barrels of oil per day (bpd) at year-end 2006.

On the same block, the company is developing the Abu field and the 2005 Puteri discovery.

Block PM323, meanwhile covers 128,000ha and has four undeveloped discoveries.

The company is also developing the East Belumut and Chermingat fields on the same block.

Offshore Sarawak, Newfield owns a 60 per cent operated interest in deepwater Block 2C, a 440,000ha area.

Penny said the company expects production from its fields in Malaysia to triple.

“Our Penara and North Lukut fields were producing about 4,000 bpd at year-end 2006 and we expect to add another 15,000 bpd by this year, especially from the Abu field,” she said.

Asked whether Newfield has any plan to increase oil and gas working interest in Malaysia, Penny said the company would consider this on a per case basis.

On Newfield’s deepwater exploration, she said the company has a commitment to drill one additional exploratory test on Block 2C in Sarawak, which may be drilled as early as 2008.

“In late 2006, we drilled our first deepwater prospect. The well found non-commercial quantities of natural gas.

“The geologic information learned from this well is being incorporated into our interpretation for other prospects on Block 2C,” she said.