Petroliam Nasional Berhad, the national oil company of Malaysia, has formally awarded Talisman Malaysia Ltd. and PETRONAS Carigali Sdn. Bhd. a new production sharing contract for the continuing production, further development and improved recovery of crude oil from the Kinabalu oil fields, Talisman Energy Inc. (TLM: Quote,TLM.TO: Quote) said Monday.
The Kinabalu Oil Fields, which comprise the Kinabalu Main, Kinabalu East and Kinabalu Far East fields, offshore Sabah, have a number of producing mature fields, with significant development upside.
Talisman and PETRONAS Carigali plan to invest over US$1 billion to increase oil recovery and production over the life of the production sharing contract. This will add to the list of fields in Malaysia where improved oil recovery techniques are being used to increase both production and reserves. Talisman will hold a 60% working interest and operate; PETRONAS Carigali will hold the remaining 40%.
The Kinabalu Oil Fields are currently operated by Shell, with the current production sharing contract expiring in late December 2012.
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by RTT Staff Writer
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