September 10, 2016
Tg. Baram acreage may be returned?
Dateline 2016-08-08, Rigzone:
Malaysia’s upstream oil and gas services company Uzma Berhad, holder of a minority stake in the Tanjung Baram oil field in Block SK307 offshore Sarawak, is unfazed by talks that the risk service contract (RSC) for the acreage might be cancelled amid cost rationalization initiative undertaken by the country’s national oil firm Petroliam Nasional Berhad (PETRONAS), local media The Star reported Saturday.
Such views were triggered recently after PETRONAS reached an agreement last month with the joint venture comprising Petrofac Energy Developments Sdn Bhd and SapuraKencana Petroleum Berhad’s subsidiaries for the cessation of the Berantai RSC located in Block PM309 offshore Terengganu, Malaysia.
“The RSC’s cessation will allow PETRONAS to minimize the project’s long-term value erosion and optimize the development and production activities in Malaysia, in line with its efforts to reduce costs and increase the efficiency of its operations,” the Malaysian state-owned firm said in the July 11 press release.
August 25, 2016
Again, this is old news for those who are in the business. I didn’t even know there was a bidding exercise, if not I would have put in a bid.
Dateline 2016-07-21, Rigzone:
Malaysia’s national oil company Petroliam Nasional Berhad (PETRONAS) appointed Wednesday its wholly-owned subsidiary Vestigo Petroleum Sdn Bhd as operator of the Berantai field in Block PM 309, located about 93 miles (150 kilometers) offshore Terangganu, Malaysia, following the cessation of the Berantai Risk Service Contract (RSC) with the previous contractors announced July 11.
“The appointment of Vestigo is in line with PETRONAS’ effort to extend the economic life of the field and maximize the long term value of the asset,” the company said in a press release.
Vestigo specializes in the development and production of small and marginal fields and currently operates the Tembikai field under the Tembikai-Chenang Cluster Small Field RSC since June 2015.
The Bertantai field comprises a wellhead platform connected to a floating production storage and offloading (FPSO) vessel, which processes and exports gas to the neighboring Angsi field via a 18.6 mile (30 kilometer) subsea pipeline before being exported onshore. First gas from Berantai commenced in October 2012.
August 21, 2016
Dateline 2016-07-11, Asia Review:
Risk sharing contracts were introduced by Petronas in an attempt to develop smaller and marginal oilfields and increase oil recovery amid depleting fossil fuel resources in Southeast Asia’s third largest economy. Unlike traditional production sharing contracts, parties bound under risk sharing pacts enjoy a prior-agreed rate of return, while risks are shared even if an exploration fails to yield results.
April 1, 2016
Dateline 2016-02-10, The Star:
Now that leading local oil and gas (O&G) player Dialog Group Bhd has called off its marginal oil field exploration project, the question is: will the other local companies, which had been awarded risk sharing contracts (RSC) by Petroliam Nasional Bhd (Petronas), be doing the same?
Since 2011, Petronas had begun a process of awarding RSCs to local companies which are partnered with international players to extract hydrocarbon assets in fields which have reserves of less than 30 million barrels of oil.
But this was when oil prices were over US$90 per barrel. At current prices of around US$30 per barrel, the extraction of oil in marginal oil fields, at least in Dialog’s case, has become no longer viable.
December 5, 2014
Dateline 2014-09-25, Oilprice.com:
The petroleum world witnessed a historic event this week. With a new type of oil production project becoming operational for just the third time in history.
That’s a type of operation known as a “risk service contract” or RSC. Which is becoming a go-to vehicle in Malaysia, for the development of that country’s offshore regime.
This month Malaysia’s state oil firm Petronas said that the Banang offshore oil field has gone to production under a risk service contract. Part of a larger field development known simply as the “KBM” cluster. A project that was being advanced by U.S. outfit Coastal Energy, which was purchased last year by the government of Abu Dhabi.
October 4, 2014
Dateline 2014-07-23, Rigzone:
Malaysia’s national oil and gas company Petroliam Nasional Berhd (Petronas) announced Wednesday that Bentara field in the Balai Cluster Risk Service Contract (RSC) area located offshore Sarawak, Malaysia has achieved its first oil production May 25.
The field which is expected to produce more than 1,000 barrels of oil per day is being developed and operated by BC Petroleum Sdn Bhd.
The Bentara field is the second field in the Balai Cluster, which successfully achieved oil production after Balai field on Nov. 6, 2013
August 1, 2013
Dateline 2013-07-04, The Sun Daily:
The bidding process for the third licensing round to develop marginal oil and gas fields under the risk service contracts (RSC) is yet to be completed, Petroliam Nasional Bhd (Petronas) said.
The market is expecting Petronas-owned Vestigo Petroleum Sdn Bhd to speed things up and pave the way for more companies to join in the fray.
“No contract has yet been awarded in this licensing round as the bidding process is still ongoing,” the national oil company said in an email to SunBiz.
Interest in RSCs perked up yesterday after a relatively small player Handal Resources said it will partner MOE Australia Ltd to explore opportunities in development of marginal oil and gas fields – with an eye for RSC agreement with Petronas.