Oil & Gas

03 Aug 2021

New Oil Field Comes Online Offshore Malaysia

03 Aug 2021  by   

Petronas has announced that the East Cendor field in Block PM304, offshore Malaysia, has achieved first oil production.

Petronas has announced that the East Cendor field in Block PM304, offshore Malaysia, has achieved first oil production.

East Cendor represents the fourth start up in a series of developments at Block PM304, including the Cendor, West Desaru, and Irama assets. The project comprises the development of a single new wellhead platform and the installation of a new four mile pipeline linking the field to the existing FPSO Cendor. The field’s production rate is expected to peak at over 7,000 barrels of oil per day, which will further extend the economic life of Block PM304, Petronas noted.

“East Cendor’s first oil success proves that the Malay Basin is by no means a mature hydrocarbon province,” Petronas’ senior vice president of Malaysia petroleum management, Mohamed Firouz Asnan, said in a company statement.

“Block PM304 started as a small field development with first production from the Cendor field back in 2006. However, the total oil-in-place volume grew through continuous efforts in appraising the block’s potential, which turned out to be large,” he added in the statement.

“Known for its light and sweet quality, Cendor crude was billed as the most expensive in the world at one time. With the success of East Cendor, more active development activities are expected in the future to monetize the large remaining resources within Block PM304,” Asnan continued.

The Petronas representative went on to congratulate Petrofac and its partners for their successful delivery of the project despite the Covid-19 pandemic and “volatile market conditions”.

“This success is a testament of the close collaboration amongst all the parties, including the local Malaysian fabricator and service providers, who have stepped up to the challenge of these unprecedented times,” Asnan said.

East Cendor was developed by Petrofac (Malaysia) Limited, Kuwait Foreign Petroleum Exploration Company, and Petronas Carigali Sdn Bhd under the Block PM304 Production Sharing Contract. Petrofac is the operator of the block.

Production from Cendor commenced on September 23, 2006, according to Petrofac’s website. The Cendor structure was discovered by Amerada Hess in 2001, following unsuccessful drilling by Exxon (from 1978 to 1980) and JAPEX (from 1988 to 1992), Wood Mackenzie notes on its site.

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