Hess Corp. (HES: Quote) said Thursday it has signed agreements with Petronas to develop the North Malay Basin, located offshore Peninsular Malaysia.
The agreements creating the North Malay Basin Integrated Gas Development Project include amendments to the existing Production Sharing Contract for Block PM302, which is operated by Hess. The amendments enlarge the contract area to include nine discovered fields in the North Malay Basin for production of natural gas.
Petronas has also awarded Blocks PM325 and PM326B to Hess and Petronas Carigali that will be explored, appraised and developed.
Hess will have a 50 percent working interest and become operator of the project, which is expected to add discovered net resources of 80 million to 100 million barrels of oil equivalent to Hess' portfolio. First production is forecast to commence in 2013 at a net rate of approximately 40 million cubic feet of natural gas per day and increase in 2015 to an estimated 125 million cubic feet per day.
Hess said the project will require a net investment for Hess of approximately $250 million in 2012 and an estimated $400 million per year between 2013 and 2015.
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by RTT Staff Writer
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