Saturday 08 Feb 2025
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(Jan 10): Malaysia’s national oil and gas company Petroliam Nasional Bhd (Petronas) has reached the final investment decision for the development of the Hidayah field offshore East Java, Indonesia.

A final investment decision in the oil-and-gas industry typically takes years to make and is a sign that a proposed project will proceed following extensive studies and planning. The project owner then approves the budget, allowing contractors to acquire materials as well as equipment to begin work.

The development plan calls for drilling of oil production wells, supported by an unmanned wellhead and central processing platform, Petronas said in a statement. The plan also includes a floating storage and offloading unit equipped with living quarters and a central control room, it noted.

“We are grateful for the continued support of the host authority and look forward to close collaboration as we progress the Hidayah field development,” said Petronas head of upstream operations Mohd Jukris Abdul Wahab.

The project cost and other production details were not disclosed in the statement.

An initial drilling in 2021 found oil-bearing carbonate build-up with reservoir qualities and tested at about 2,100 barrels of oil per day with “good crude quality”, Petronas said back then.

PC North Madura II Ltd, a subsidiary of Petronas, is the operator with 100% participating interest in its production sharing contract.

Petronas operates the production sharing contracts of Ketapang, North Madura II, and North Ketapang off East Java, as well as that of Bobara offshore West Papua.

The company is also a joint venture partner in five production sharing contracts spanning onshore and offshore Sumatra, the Natuna Sea, East Java, as well as East Indonesia.

Edited ByJason Ng
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