Petronas Turns the Taps on Kasawari Field Offshore Malaysia
Petronas has begun first gas production at the Kasawari field, located in Block SK316, approximately 200 km off the coast of Sarawak, Malaysia. The field is flowing at an initial rate of 200 MMcf/D.
Discovered in 2011, Kasawari provides feed stock for both the Petronas LNG Complex in Bintulu and domestic demand for gas. The field contains approximately 10 Tcf of natural gas resources, with a gas sales rate of 545 MMcf/D.
The Kasawari project includes a central processing platform, a flare platform, and a wellhead platform, all interconnected via bridges. Gas from the field is exported to a new riser platform at the E11 production hub through an 81‑km carbon steel pipeline for further gas delivery to customers in Bintulu.
Block SK316 is operated by Petronas Carigali, which holds a 90% participating interest. Partner Exploration and Production Malaysia Venture (EPMV) holds the remaining 10% stake.
Inpex Awarded Exploration Block Off Western Australia
Inpex subsidiary Inpex Browse E&P was awarded an exploration permit over Release Area AC22-1, now named AC/P71 in Australia’s 2022 Offshore Petroleum Exploration Acreage Release. Inpex Browse will be the operator and hold 100% working interest in the tract. The block is located off the northern coast of Western Australia and covers a surface area of approximately 920 km2, in water depths ranging between approximately 100 and 300 m.
The block is adjacent to the AC/RL7 Retention Lease in which Inpex acquired a 74% participating interest in 2023 and where natural gas and condensate fields have been discovered. It also lies to the north of and in the general vicinity of the Ichthys gas-condensate field, which supplies natural gas to the Ichthys LNG Project.
Shell Invests in Water Injection at Vito Field
Shell has taken a final investment decision (FID) on a waterflood project at its Vito asset in the US Gulf of Mexico. Water will be injected into the reservoir formation to provide additional drive and displace more oil. The process is due to begin in 2027 and is expected to significantly enhance volume capacity at the Vito field.
“Over time, we’ve seen the benefits of waterflood as we look to fill our hubs in the Gulf of Mexico,” said Zoë Yujnovich, Shell Integrated Gas and Upstream director. “This investment will deliver additional high-margin, lower-carbon barrels from our advantaged Upstream business while maximizing our potential from Vito.”
The three water-injection wells were all drilled as pre-producers. Shell said the Vito waterflood project will increase recoverable resource volume by 60 million BOE.
Shell operates Vito with a 63.11% working interest. Partner Equinor holds the remaining 36.89%. The partners announced FID for the Vito development in April 2018. First oil followed in February 2023.
Kosmos Sees Tiberius FID This Year
Kosmos Energy expects to make FID on the development of its operated Tiberius project in the US Gulf later this year. Long-lead items and a drilling rig have been secured to manage the development timeline and project costs. The find is expected to be developed subsea and tied back to the Occidental-operated Lucius spar platform 6 miles to the northwest.
The operator plans to farm down its stake in the project to optimize its working interest to fit within the company’s targeted 2025+ capital program. Estimated gross resource at Tiberius is approximately 100 million BOE.
The Tiberius exploration well, drilled in 2023, tested a four-way structural trap in the outboard Wilcox trend in Keathley Canyon Block 964. The well encountered approximately 75 m of net oil pay in the primary Wilcox target.
The well is in 2300 m of water and was drilled to a total vertical depth of roughly 7800 m.
Talos Buys Stake in Monument Find
Talos Energy has agreed to acquire a 21.4% working interest in the Monument discovery, a large Wilcox oil find located in Walker Ridge blocks 271, 272, 315, and 316, for a purchase price of $32 million as of the effective date. The seller was not identified. Monument will be developed as a subsea tieback to the Shenandoah production facility destined for Walker Ridge Block 52. The unit is expected to sail from Hyundai Heavy Industries shipyard in Ulsan, South Korea, around year-end.
The Monument discovery is post-FID with appraised gross proved plus probable (2P) reserves of approximately 115 million BOE. First production is expected to be between 20,000 to 30,000 BOE/D gross by late 2026 under restricted flow due to facility-rate constraints. There is an additional 25 to 35 million BOE drilling location adjacent to the discovery that could extend the resource and Talos’s pipeline of drill-ready opportunities.
Talos expects a net investment of approximately $25 million in 2024 and approximately $160 million over 2025 and 2026, with no changes to its 2024 capital expenditures guidance. Talos strategically reallocated a portion of its 2024 capital investments for the Monument discovery, given a later-than-anticipated arrival of the West Vela rig.
Operator Beacon Offshore Energy and its partners sanctioned the first phase of the Wilcox‑aged development earlier this year. The project will initially be developed via a two-well, 17‑mile subsea tieback to the Shenandoah FPS. First production from Monument is expected by the third quarter of 2026.
Delays Hit Vår Energi Balder X FPSO Project
Vår Energi confirmed that the target production start for the Balder X project in the North Sea has been moved to the second quarter 2025. According to the operator, while good progress has been made on the Jotun FPSO at the Rosenberg yard, some onshore completion and commissioning work required prior to sail-away remains, prompting the schedule push.
The company said with all development wells completed and all subsea production systems installed, the plan is now to complete the FPSO vessel fully onshore, enabling first oil during the second quarter next year. As part of the decision not to sail, the cost basis for the project has been updated reflecting a sail-away in the spring of 2025. This represents an additional project cost of around $400 million gross pre-tax, of which approximately 75% will be incurred in 2025.
Balder X will secure production from the Balder Area beyond 2045, unlocking gross proved plus probable (2P) reserves of around 150 million BOE and with a gross peak production of 80,000 BOE/D.
The Jotun FPSO will be an area host, enabling future growth opportunities. Balder Phase V is being progressed, including the drilling of six production wells to utilize the remaining subsea template well slots to capture gross 2P reserves of more than 30 million BOE. Drilling of these wells will begin in the first half of 2025 and be completed in 2026. In addition, the Balder Phase VI project is being matured, to add new subsea facilities and wells, with expected investment decision planned first half of 2025. There remains significant additional resource upside in the area and further exploration drilling and tieback development phases are being planned.
Vår Energi operates the Balder Area with a 90% working interest. Partner Kistos Energy holds the remaining 10% stake.
ExxonMobil Transfers Operatorship of Malaysia Oil and Gas Assets to Petronas
Supermajor ExxonMobil has agreed to transfer the operatorship of its Malaysian oil and gas assets to state energy firm Petronas. The assets include the country’s flagship Tapis oil field offshore Terengganu.
“This is not a sale and there will be no changes to (local subsidiary) EMEPMI’s working interest in the production-sharing contracts,” EMEPMI said in a statement to Reuters.
ExxonMobil has been trying to sell its aging upstream assets in the country since 2020, as part of its global asset rationalization campaign.
The company operates 35 oil and gas platforms in 12 offshore fields near Terengganu and has investments in 10 other platforms in five fields in the South China sea.
The operations produce 600,000 B/D of crude oil, about 15% of Malaysia’s total output, and more than half of the country’s 2 Bcf/D of natural gas.
Petronas Signs Three New Production-Sharing Contracts in Peninsular Malaysia
Petronas has signed production-sharing contracts (PSCs) for three clusters of discovered resource opportunities (DRO) marketed under the Malaysia Bid Round Plus (MBR+) Round I. These clusters are located offshore Peninsular Malaysia.
The three fields, which comprise Bubu, Bunga Tasbih, and Enau, were awarded to Ping Petroleum and Duta Marine, while another PSC signed comprises four fields—Puteri, Padang, Penara, and North Lukut—and was awarded to Jadestone Energy.
Additionally, the Pertang, Kenarong, Noring, and Bedong fields were awarded to Hibiscus Oil & Gas Malaysia Limited and Petronas Carigali.
“Malaysia Petroleum Management (MPM) will continue to provide the necessary support and foster collaboration to facilitate the monetization of these assets. Furthermore, MBR+ and Petronas myPROdata have been pivotal in opening doors for potential investors and existing players to pursue business growth opportunities within Malaysia” said Datuk Ir. Bacho Pilong, senior vice president of MPM.
The awarded PSCs encompass a portfolio of 12 fields, comprising oil and gas assets within the Malay basin in Peninsular Malaysia. Located within a proven hydrocarbon basin and near existing infrastructure, these clusters offer synergistic development opportunities for monetization.
In the coming weeks, Petronas will be signing more MBR+ PSCs. Introduced in October 2023, MBR+ complements the annual Malaysia Bid Round licensing, providing an additional avenue for investors to participate in DRO and late-life assets in Malaysia.
TotalEnergies Exits From Offshore Blocks 11B/12B and 5/6/7 in South Africa
TotalEnergies will withdraw from blocks 11B/12B off the Southern coast of South Africa, in which its affiliate TotalEnergies EP South Africa holds a 45% interest. The move follows the decision of partner CNRI to abandon the block.
TotalEnergies entered into Block 11B/12B in 2013 and made two gas discoveries, Brulpadda and Luiperd, which could not be turned into a commercial development as it appeared to be too challenging to economically develop and monetize these gas discoveries for the South African market.
In addition, TotalEnergies has also decided to exit from offshore exploration Block 5/6/7 where TotalEnergies EP South Africa currently holds a 40% interest.
