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180MMbbl of crude. The feld, which was discovered in 1969, is expected to reach peak production of 30,000 b/d by 2016-2017, according to a September report by Platts.

Shell similarly invested RM$38 billion for EOR projects offshore Sarawak and

Southeast Asia

Sabah, East Malaysia. In November 2011,

Shell announced the signing of a heads of agreement for two, 30-year produc- tion sharing contracts with Petronas to extend the life and increase recovery at the Baram Delta (BDO) and North Sabah felds. Shell said the EOR projects could boost production by an additional 90 to 100 Kb/d of oil and feld life past 2040.

Shell has four producing oil felds off

Sabah operated under a new PSC signed

Sikh Shamsul Ibrahim, Director of Malaysia’s Investment Development Authority with Petronas. Shell is also participating (MIDA) discusses development opportunities at LAGCOE.

in the development of fve deepwater large new prospects could cause oil Investment Development Authority felds including Gumusut-Kakap (33% production across the region to fall by (MIDA), based in Houston, discussed operating interest) and the Malikai feld almost one-third by 2035. As a result, current challenges to production, and (35% operating interest). In Sarawak, the southeast Asia region is poised to some of the ways the country is look- Shell maintains 40% interest in the 2011 become the world’s fourth-largest oil ing to boost oil recovery efforts on its Baram Delta EOR PSC.

importer, behind China, India and the mature felds. In 2011, both Shell and Malaysia also boasts impressive

European Union with oil import depen- ExxonMobil opted to make billion dollar natural gas numbers in addition to oil dency doubling to 75%, as net imports investments in enhanced oil recovery production and reserves. Malaysia is the rise from 1900b/d to just over 5000b/d. projects off Malaysia. second-largest natural gas producer in

The region’s spending on net oil imports ExxonMobil put up RM$10 billion to the region, according to recent EIA data, is set to triple to US$240 billion in 2035. fund development and drilling activi- and it is second only to Qatar in LNG

Thailand and Indonesia’s spending on ties, as well as to upgrade and build new exports. Malaysia’s natural gas produc- net oil imports tripling to nearly $70 bil- oil and gas facilities. ExxonMobil along tion has risen over the past two decades lion each in 2035. to meet growing domestic and

Malaysia’s oil and gas industry export demands. boasts impressive stats with 4 Toh and Ibrahim used their billion bbl of proved oil reserves. presentations at LAGCOE to tout

The country is the second largest several perks of doing business oil producer in Southeast Asia, in their respective countries, producing 642.6 Kb/d in 2012. namely stable local govern-

However, Malaysia’s output is ments, a large talent supply, and in decline, having hit its produc- well-developed infrastructure tion peak of 861.8 Kb/d in 2004, for oil, gas, and petrochemical according to recent EIA produc- projects. Both Malaysia and tion statistics. Singapore serve as manufactur-

The EIA further said that ing hubs for the Southeast Asia recent foreign investment in region, with both countries deep water and technically chal- presenting easy access to nearby lenging felds primarily in the Asian markets. Singapore, espe-

Sarawak and Sabah states provides impe- with PSC partner Petronas concentrated cially, is already an established player in tus to maintain natural gas production improvements on seven mature off- the shipbuilding industry with the likes levels over the next few years. However, shore felds, including Tapis, Guntong, of Sembcorp Marine and Keppel Corp. production declines Tabu, Palas, Seligi, Irong Barat, and based in the country. Singapore, Toh at Malaysia’s mature Semangkok. said, is now a global leader in shipbuild- felds have led to invest- The Tapis EOR project, located off- ing with >70% of global market share in ments in enhanced oil shore Terengganu in the South China the building of rigs, jackups, semisub- recovery (EOR) and the Sea, is on track for start up by the end mersibles, and FPSOs. development of mar- of this year following the installation of As of press time, a trade mission ginal and deepwater the 23,500 tonne Tapis R platform jacket between from the city of Lafayette, felds. back in July. The project aims to boost Louisiana, to Malaysia has been proposed

Sikh Shamsul Ibrahim, the life of the Tapis feld by an additional at LAGCOE, but no details have been

Sikh Shamsul

Director of Malaysia’s 30 years, and recover an additional announced.

Ibrahim

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