ExxonMobil: Gas production starts from Damar field in Malaysia

February 14, 2014

Exxon Mobil Corporation today announced the start of natural gas production at the Damar field off the east coast of Peninsular Malaysia.

ExxonMobil subsidiary, ExxonMobil Exploration and Production Malaysia Inc., has a 50 percent interest in the project.

The Damar field has a projected capacity of 200 million cubic feet of gas per day. ExxonMobil and joint-venture partner Petronas Carigali Sdn. Bhd. have planned a total of 16 development wells for the platform.

“Damar will help meet increasing natural gas demand in Malaysia,” said Neil W. Duffin, president of ExxonMobil Development Company. “It also represents one of several projects that will add to ExxonMobil’s global production in the coming years as we remain focused on delivering profitable volumes over the long term.”

Damar was developed under a gas production sharing contract between ExxonMobil, Petronas Carigali and Petronas. ExxonMobil is the operator of the Damar field and Petronas Carigali holds a 50 percent interest.

The Damar startup follows the previously announced Telok gas development in Malaysia, which began production in March 2013. The projects provide additional gas supplies to help meet Malaysia’s power and industrial needs and promote growth of the country’s natural gas industry.

“The Damar platform represents the latest generation of natural gas satellite platforms under ExxonMobil’s ‘Design One, Build Multiple’ concept, which capitalises on efficiencies and lessons learned from previous development projects,” said J. Hunter Farris, EMEPMI chairman and president. “Beyond providing an economical approach to developing smaller fields, our concept shortens construction time substantially and results in significant cost savings.”

Executed under a fast-tracked development schedule, onshore fabrication for the Damar gas project commenced in November 2012 and was completed in under a year. Designed as a four-legged gas satellite platform, Damar’s jacket and topsides weigh approximately 1,400 metric tons and 1,800 metric tons, respectively. Full well stream gas is being produced via a new 22-kilometre corrosion resistant alloy-clad pipeline to the existing Lawit A platform for processing.

Installation of the Damar jacket, topsides, pipeline and subsea power and communication cable involved four major installation vessels with the total offshore vessel spread engaging more than 800 personnel to complete the work safely, on schedule and within budget. Hook-up and commissioning activities started in October 2013.

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February 14, 2014