Malaysia builders eye Newfield job
Upstream
26 August 2006

Malaysian offshore contractors are standing by for platform and pipeline prizes on Newfield Exploration’s East Belumut and Chermingat oilfields project off Terengganu, Malaysia.

Two platforms – one a 20-slot unit, the other a four-slot platform – and subsea pipelines are the main facilities for Newfield’s first operated offshore project in Malaysia.

Sources said Malaysia player Oilfab is the likely builder of the smaller platform. There was less certainty on the larger unit.

There are just six companies in Malaysia licensed to bid for oil and gas fabrication tenders – Oilfab, Brooke Dockyard & Engineering, HL Engineering, Malaysian Marine Heavy Engineering, Ramunia Fabricators and Sime Darby Engineering.

Newfield signed a production sharing contract in June 2005 for Block PM323, which already had four existing discoveries.

The East Belumut and Chermingat oilfields were identified for development, and Newfield expects them on stream in January or February 2008 at a gross rate of about 15,000 barrels of oil per day.

Tioman Drilling, a joint venture between SapuraCrest Petroleum and Seadrill, recently won a two-year $87 million contract with Newfield for development drilling in block PM323.

The semi-submersible self-erecting tender rig West Berani, which is being built and is due for delivery in this year’s fourth quarter, is due to start work with Newfield Malaysia in January.

A total of 10 development wells will be drilled for East Belumut and Chermingat, and Newfield requires a jack-up for additional exploration and production drilling.

Sources said East Belumut will be developed in two phases, with the latter stage coming on two years after initial start-up.

The average water depth in PM323 is about 200 feet.

The block lies 64 kilometres from Newfield’s other Peninsular Malaysia block, PM318, in which it owns a 50% non-operating stake and generates net production of about 5,000 bpd.

David Trice, Newfield’s chief executive said previously: “ Malaysia has developed into a focus area for us, offering visible production growth over the next few years and an inventory of attractive exploration prospects that could provide additional developments.”

Newfield entered Malaysia in 2004 with the signing of two PSCs-PM318 and deep-water Block 2C.

Block 2C covers more than 1.1 million acres off Sarawak and is operated by Newfield with a 60% interest.

There is a two-well commitment in Block 2C with the first well set for spudding in October this year with the Ocean Rover drilling rig.