Tuesday, January 1, 2008

KUALA LUMPUR Natural Gas Contract

Petroliam Nasional Bhd (Petronas) yesterday awarded a production sharing contract (PSC) to Shell Energy Asia Ltd, ConocoPhillips Sabah Gas Ltd and Petronas Carigali Sdn Bhd for the exploration, development and production of natural gas from the Kebabangan Cluster fields, offshore Sabah.

Under the contract, Petronas Carigali, the exploration and production arm of Petronas, has a 40% interest in the PSC while Shell Energy Asia Ltd and ConocoPhillips have a 30% stake each.

A joint operating company, Kebabangan Petroleum Operating Company Sdn Bhd, has been formed to operate the venture on behalf of the partners, Petronas said in a statement.

The natural gas produced from the fields is expected to be evacuated via pipelines to the Sabah Oil and Gas Terminal, which is currently under construction.

The gas fields in the Kebabangan Cluster, comprising the Kebabangan, Kamunsu East, Kamunsu East Upthrown and Kamunsu East Upthrown Canyon, are located about 130km offshore Sabah. – Bernama

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