First Gas Flows From Hess-Operated Project In Malaysia

Oil & Gas

Malaysian oil and gas player Petronas has announced that the North Malay Basin (NMB) Phase 3 project in Block PM302, located 180 miles off Peninsular Malaysia, has recently achieved its first gas production.

Block PM302 is operated by Hess Corporation with a 50 percent participating interest. Its only partner in the block is Petronas Carigali which owns the remaining 50 percent.

This comes several months after Hess revealed plans to use $270 million in January 2022 for production activities at its NMB project and the Malaysia/Thailand Joint Development Area in the Gulf of Thailand. At the time, the firm explained that these funds cover drilling and facilities along with work that was previously deferred due to Covid-19 and low commodity prices.

The NMB Phase 3 project was sanctioned in 2019 and is part of a multi-phase development. It includes the installation of the new Bergading-B Wellhead Platform that adds another 100 million cubic feet per day of gas supply from Block PM302, bringing the total production to 400 million cubic feet per day.

“We are pleased that Hess has taken a long-term view of the business in Malaysia across industry cycles, demonstrating confidence in Malaysia’s upstream industry. Together, we have continued to develop the NMB project to unlock the full potential of the block. This is a major milestone for both partners, as the NMB Phase 3 project is key in sustaining Peninsular Malaysia’s gas supply amid rising demand,” Petronas Senior Vice President of Malaysia Petroleum Management Mohamed Firouz Asnan said.

“The close collaboration between Block PM302 parties and their service providers in overcoming challenges during the pandemic delivered this successful completion, which reflects the overall resilience of the Malaysian Upstream ecosystem,” he added.

Petronas, through Malaysia Petroleum Management, is the custodian of the petroleum resources in Malaysia. With this mandate, Malaysia Petroleum Management manages petroleum arrangements in Malaysia and provides stewardship of upstream exploration and production activities in the country.

To remind, Phase 1 of full field development achieved the first gas in 2017, just three years after the project was sanctioned. The NMB Phase 2 achieved the first gas in 2019 and the Phase 3 project, which is part of this multi-phase development, was also sanctioned that same year.

The North Malay Basin Block PM302 lies in a water depth of approximately 180 feet with multiple gas-bearing zones situated at depths of 3,500 – 10,000 feet. Block operator Hess expects Phase 4A production to be achieved in 2023.

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