ConocoPhillips Signs a Production Sharing Contract For Appraisal and Development Offshore Sabah, Malaysia.HOUSTON -- ConocoPhillips (NYSE NYSE See: New York Stock Exchange :COP) today announced that a PETRONAS PETRONAS Petroliam Nasional Berhad (Malaysia's national petroleum corporation established 1974) Carigali-ConocoPhillips joint venture has signed a Production Sharing Contract with PETRONAS, the Malaysian national oil company, for the appraisal and development of the Kebabangan oil field, in waters off the northwest coast of Sabah, Malaysia. The Kebabangan field was discovered in 1994 when the initial exploration well encountered a thick gas column with a thin oil rim. An appraisal well drilled in 2002 penetrated gas as well as an oil column in several reservoir intervals. Well tests showed the oil to be light and of high quality. The Kebabangan discovery will go through an additional appraisal phase to determine the extent and commerciality of the oil reserves Oil reserves refer to portions of oil in place that are claimed to be recoverable under economic constraints. Oil in the ground is not a "reserve" unless it is claimed to be economically recoverable, since as the oil is extracted, the cost of recovery increases incrementally , and if successful, will move into development. Water depths range from 400 to 800 feet. The Kebabangan appraisal represents an opportunity for ConocoPhillips and PETRONAS Carigali to build upon previously announced exploration success in their continuing deepwater Malaysian exploration program in deepwater blocks G and J offshore Sabah. These earlier announcements involved two oil discoveries -- Gumusut in 2003 and Malikai in 2004 -- in which ConocoPhillips holds an interest, along with PETRONAS Carigali and Shell. Joint-venture partners in the Kebabangan field are ConocoPhillips (East Malaysia East Malaysia: see Malaysia. ) Ltd., 40 percent, and PETRONAS Carigali, 60 percent. A joint operating company operating company A business that engages in transactions with outsiders. located in Kuala Lumpur Kuala Lumpur (kwä`lə l  m`pr), city (1990 est. pop. will be established to act as the operator of the block on behalf of the partnership. "We are excited about our growing position in Malaysia and the strong partnership we have built with PETRONAS," said Ryan Lance, president of Asia Pacific for ConocoPhillips. "Together, we hope that ConocoPhillips and PETRONAS will be able to continue to build a strong legacy position in Malaysia and other areas that will add to each company's growth and value in Southeast Asia Southeast Asia, region of Asia (1990 est. pop. 442,500,000), c.1,740,000 sq mi (4,506,600 sq km), bounded roughly by the Indian subcontinent on the west, China on the north, and the Pacific Ocean on the east. . ConocoPhillips is an integrated oil company with interests around the world. For more information, go to www.conocophillips.com. |
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