ExxonMobil Starts Gas Production from Telok Field in South China Sea

ExxonMobil Exploration and Production Malaysia, a subsidiary of Exxon Mobil Corporation, began natural gas production from the Telok field, located offshore Malaysia in the South China Sea.

The Telok A platform marks the first phase of the Telok gas development project and was developed under a gas production sharing contract between ExxonMobil, as the operator, Petronas Carigali Sdn Bhd (PCSB) and PETRONAS. ExxonMobil and PCSB each hold a 50 percent interest in the project.

ExxonMobil and PCSB advanced the development of the field under the terms of the gas production sharing contract with PETRONAS to meet increasing demand for natural gas in Peninsular Malaysia. It is one of several upstream investments announced under Malaysia’s Economic Transformation Programme in 2011, which will see ExxonMobil and PCSB invest over RM10 billion in new oil and gas assets to help ensure reliable and sustainable energy supplies for Malaysia.

J. Hunter Farris, ExxonMobil Exploration and Production Malaysia Inc. chairman and president said, “The Telok project is another successful example of collaboration between ExxonMobil and PCSB in meeting Malaysia’s growing energy needs for the power and industrial sector.”

“ExxonMobil is committed to ensuring reliable gas supplies to the nation and to using international best practices to enhance our operations in Malaysia,” said Farris.

Building on experience from ExxonMobil’s previous satellite fields development project in Malaysia, the development concept of “design one, build many” was utilised to efficiently develop the project and shorten construction and installation timelines.

“The completion of the Telok A platform once again demonstrates the ability of Malaysian contractors to design and build world-class oil and gas production facilities,” said Farris. “The project required more than 3.5 million total work hours and was executed without a single lost-time injury.”

Located 200 kilometres offshore the east coast of Peninsular Malaysia, the Telok development consists of two four-legged unmanned gas satellite platforms. Full well stream natural gas is being produced via a new 25 kilometre pipeline to the existing Guntong E platform for processing and a total of 14 development wells are planned.

Fabrication of the Telok A platform began in October 2011, and the platform jacket was installed in September 2012. The platform topside was installed in October 2012 and a jackup drilling rig was subsequently mobilised to the platform to commence drilling operations. Startup activities were safely conducted offshore during the monsoon period to achieve this milestone.

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LNG World News Staff, March 11, 2013; Image: Arcelor Mittal