PETRONAS today signed the main principles towards a new production sharing contract (PSC) with ExxonMobil Exploration and Production Malaysia Inc. (EMEPMI) and PETRONAS Carigali Sdn Bhd that would allow the two PSC partners to continue their upstream participation in seven oil fields offshore Peninsular Malaysia.
The two partners have been involved in the exploration, development and production activities in the seven fields under a PSC signed with PETRONAS in 1995 which is due to expire in March 2012.
Among the key terms agreed in the main principles is the commitment by both EMEPMI and PETRONAS Carigali to spend a minimum of US$2.1 billion for major investments in enhanced oil recovery development activities, rejuvenation of facilities and the development of new reservoirs in the fields.
The agreement on the main principles towards the new PSC is a testimony by PETRONAS and the two PSC partners to continue their collaboration and efforts to ensure efficient development and sustainable supply of petroleum resources for Malaysia to help meet local and export demands.
The agreement was signed at the PETRONAS Twin Towers in Kuala Lumpur. PETRONAS was represented by its Vice-President of Exploration & Production Business Encik Ramlan A. Malek; EMEPMI by its Chairman Mr. Liam M. Mallon; and PETRONAS Carigali by its Managing Director/CEO Datuk Abdullah Karim.
Also present were PETRONAS' President & CEO Tan Sri Dato Sri Mohd Hassan Marican and ExxonMobil Corporation's Senior Vice-President Mr. Mark W. Albers.
Media Relations Department
27 March 2008