ExxonMobil – extension of PSCs


I earlier reported that TCOT / OSC were being handed over to PCSB. Now I can note that ExxonMobil Exploration and Production Malaysia Inc’s (EMEPMI) Production Sharing Contracts (PSC) were extended.

At 3:00 p.m. on Wednesday, March 26, EMEPMI signed with PETRONAS and PETRONAS Carigali the Main Principles Agreement that will lead to the execution of a new Production Sharing Contract (PSC).

In summary, the new PSC will enable EMEPMI to continue production of the existing reserves in the seven fields currently under the 1995 PSC until 2033.  It will also be pursuing additional oil development and will have the opportunity to pursue Enhanced Oil Recovery (EOR) activities. 

As part of the arrangement, EMEPMI will retain operatorship of all the existing offshore fields, and will extend this to 2033.  Operatorship of the onshore assets, and in particular the Terengganu Crude Oil Terminal (TCOT), will be transferred earlier than initially planned, and will be accelerated from 2012 to no later than June 2009 along with the gas and condensate facilities (i.e. OSC).  This transfer is strategic to PETRONAS due to national interest considerations.

Other aspects of EMEPM’s current onshore operations at Kemaman Supply Base will
remain as is.

9 Responses to ExxonMobil – extension of PSCs

  1. jabbathehutt says:

    Why didn’t I get the PSC earlier, it’s paid for!

    Hey, 2033, even the guy that signed it may not live to see that day….. (by the way, Wata, do you know how old is he?)

  2. Darth Sidius says:

    Don’t worry about the guy not living to see that day….its a ‘family business’!

  3. Mat Lan says:

    Does anybody know the remaining reserves left from these PSCs, and how much it started to begin with? That would be interesting…

  4. zzeed says:

    it means approx. 1 thing to the xom folks: look guys, more work with roughly the same resources.

  5. nelwan says:

    New PSC has been signed successfully last year. But, Did a conflict on PSC ever happened before with Exxon or other oil and gaz companies ?

    • Wata says:

      nelwan: I wouldn’t say that there was a conflict. Every PSC requires negotiation. In EMEPMI’s case, I believe the PSC extension required some capex commitment, and a change of operatorship of the assets at Kerteh.

  6. salleh says:

    don’t know about that but what i know is their asset is in bad condition due to EPMI non comittment to it, even the pipeline going to TCOT is in bad condition, looks like it gonna burst any time looking at the way it vibrate and you should see also their statelite platform it is equally bad. Maybe it it is good that Petronas extended the PSC as it would Petronas a lot of money to repair/refurbish it.

    • Wata says:

      salleh: and why would you think extending the PSC would improve the asset condition? You should have heard the screams when Bekok-C was handed over to PCSB.

  7. salleh says:

    I did not say it would improve the condition, I only mention that it would save Petronas a lot of money as it won’t be their problem in maintaining the asset. Like always it will be – Why repair when it still works and I know that some platform belong to Exxon has to be shutdown for several days as no proper maintenance and this happen during the peak of crude price and about 6-8 months before handover.

    ps.

    I have heard that Ted Botner CEO of Murphy has been given a Datuk title by Pahang, is it because of Gas Hub in Pekan ? Trying to get operator to invest there since Murphy is doing exploration in Indonesia ?

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