KUALA LUMPUR (May 7): Exxon Mobil Corp announced today that it has commenced natural gas production from the second phase of the Telok gas development project in Perak, the Telok B platform located off the east coast of Peninsular Malaysia.

In a statement today, the largest US oil and gas (O&G) major said its subsidiary ExxonMobil Exploration and Production Malaysia Inc has begun work at Telok B.

The group said the Telok development consists of two satellite platforms — Telok A, which started up in 2013, and Telok B.

Both platforms combined can produce more than 450 million cubic feet per day of natural gas, the group added.

The Telok field was developed under a gas production sharing contract among ExxonMobil as the operator, Petronas Carigali Sdn Bhd (Petronas Carigali) and Petronas, to help meet demand for natural gas in Peninsular Malaysia.

ExxonMobil and Petronas Carigali hold a 50% interest in this project respectively.

Telok said the group is one of several upstream investments announced under Malaysia's Economic Transformation Programme (ETP) in 2011, which saw ExxonMobil and Petronas Carigali investing more than RM10 billion in new O&G assets, to help ensure reliable and sustainable energy supplies for Malaysia.

"The completion of the Telok B platform highlights the capability of Malaysian contractors to design, fabricate and install O&G production facilities in a safe and efficient manner," said ExxonMobil Exploration and Production Malaysia's president See Kok Yew. See is also chairman of Exxonmobil subsidiaries in Malaysia.

"The Telok field development is another successful partnership between ExxonMobil and Petronas Carigali that's helping to ensure reliable gas supply to the nation," added See.

“Drilling operations from Telok B commenced in September 2014, and full well stream natural gas is being produced via a 25km pipeline to the existing Guntong E platform for processing,” the statement further read.