Roc Oil farms in Production Sharing Contract for three fields located offshore Malaysia
Roc Oil Company Limited (ASX: ROC), is pleased to announce the farm in to a Production Sharing Contract (PSC) which includes three fields D35, D21 and J4 (Fields), located offshore Malaysia in water depths of approximately 50 metres. The Fields are currently 100% owned and operated by PETRONAS Carigali and ROC has farmed into a 50% participating interest. The Fields are in production with a combined daily oil rate of approximately 10,000 bopd and gas sales of approximately 17 mmscf/d gross working interest. ROC’s economic interest (50%) of the 2P reserves from the Fields is 8.7 mmboe.
ROC’s Chief Executive Officer Mr Alan Linn said: “The farm in is an excellent fit for our business and in line with our Asian development strategy, we expect the Fields to become cornerstone development assets within our growing regional portfolio. The Fields, particularly D35, contain material in place oil and gas volumes, and overall field recovery is expected to benefit significantly from the introduction of secondary and tertiary recovery technologies. The fields provide a portfolio of immediately bookable reserves plus contingent and prospective resources, which combined materially add to and extend the reserves and resources life of ROC.
The farm in agreement includes amendments to the existing PSC effective from 1 January 2014 until December 2034. The PSC terms are designed for field redevelopment and enhanced oil recovery (EOR) to commercially encourage progressive incremental oil development over the full life of the PSC.
ROC’s experience in the redevelopment of the Zhao Dong fields, offshore Bohai Bay, China, is a good analogy for the redevelopment potential of the Fields. Since 2006, ROC has doubled the recoverable reserves in Zhao Dong with a combination of reservoir development optimisation; facilities debottlenecking; capacity enhancement and the introduction of low cost drilling for production and injection wells designed to maximise recovery from compartmentalised reservoirs. PETRONAS Carigali and ROC will work together to unlock the Fields’ redevelopment potential and our track record has been key in bringing this significant redevelopment opportunity to ROC.”
Farm In Terms
Key terms in the agreements are summarised below:
US$25 million plus a carry with a 50% participating interest of US$80 million for the project spread over Phases 1 and 2.
The project will be delivered by an Integrated Project Team comprising personnel from ROC and PETRONAS Carigali. PETRONAS Carigali will continue to be the Operator of the PSC and retains responsibility for operations and maintenance of the Facilities. PCSB has appointed ROC as the Project Development Manager, responsible for subsurface management, well engineering, new facilities projects and project execution.