Friday 29 Mar 2024
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KUALA LUMPUR (July 20): Following the cessation of the Berantai Risk Service Contract (RSC) with the previous contractors, national oil company Petroliam Nasional Bhd (Petronas) has appointed its wholly-owned subsidiary, Vestigo Petroleum Sdn Bhd, to continue the operations and maintenance of the field on its behalf.

Recall that just less than 10 days ago, Petronas issued a statement saying that the cessation of the RSC with UK oil services provider Petrofac Energy Development Sdn Bhd and SapuraKencana Petroleum Bhd will allow it to minimise the project's long-term value erosion and optimise the development and production activities in Malaysia, in line with its efforts to reduce costs and increase the efficiency of its operations.

According to filings by London-listed Petrofac Ltd and Bursa Malaysia-listed SapuraKencana, a mutual agreement was reached to terminate the Berantai RSC, which will result in Petronas reimbursing all outstanding capital and operational expenditures to the contractors by June next year, while ownership of Berantai floating production, storage and offloading (FPSO) vessel will be transferred to Petronas.

The cessation of the RSC with the two companies will take effect on Sept 30.

Located about 150km offshore Peninsular Malaysia, the Berantai field produced first gas in October 2012.

"The field comprises a wellhead platform connected to a floating production, storage and offloading (FPSO) vessel, the Berantai FPSO, which processes and exports gas to the neighbouring Angsi field via a 30km subsea pipeline before being exported onshore," said Petronas in a statement announcing Vestigo's appointment today.

Vestigo specialises in the development and production of small and marginal fields.

Currently, Vestigo operates the Tembikai field under the Tembikai-Chenang Cluster Small Field RSC, which achieved first oil in June 2015.

"The appointment of Vestigo is in line with Petronas' effort to extend the economic life of the field and maximise the long-term value of the asset," the statement said.

 

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