Published: Monday January 31, 2011 MYT 1:32:00 PM
SapCrest, Kencana and Petrofac in JV to develop Berantai
PETALING JAYA: Sapura Crest Petroleum (SapCrest), Kencana Petroleum and Petrofac Energy Developments, a unit of London-listed Petrofac, has entered into a joint venture (JV) to develop and operate the Berantai field located 150km offshore Terengganu.
A risk service contract was signed by Petronas and the operating parties to carry out the development and production of petroleum resources from the Berantai field while a joint operating agreement was also signed between the operating parties.
The contract would be for nine years commencing Jan 31, 2011 with first gas from the project expected by the end of Dec 2011.
Separate filings by SapCrest and Kencana to the stock exchange showed that both would have a 25% stake in the joint operating agreement with Petrofac owning the remainder stake.
Under the agreement, the operating parties would provide one well-head platform with 18 wells (expected to be completed by end-2012) together with related pipeline linking it to another existing platform and the provision of a floating production, storage and off-loading vessel (FPSO).
Additionally, the operating parties would also have the right to deploy works and services to the project while a second well-head platform would be installed in a subsequent phase.
The total development cost including for the subsequent phase, to be incurred collectively by the operating parties, was estimated at this juncture at approximately US$800 million excluding the provision of the FPSO.