Talisman Energy : Petroliam Nasional : Awarded Production-Sharing Contract To Talisman Malaysia
05/28/2012| 12:47am US/Eastern
Malaysia's state-owned oil and gas company Petroliam Nasional Bhd, or Petronas, said Monday that it has awarded a production-sharing contract to Talisman Malaysia Ltd. to work in the Kinabalu fields located offshore of the eastern Sabah state.
Under the contract, both Talisman and Petronas' subsidiary Petronas Carigali Sdn Bhd will invest over $1 billion to continue production, further development and improved recovery of crude oil from the fields with matured reservoirs, according to a statement from Petronas.
Talisman Malaysia will be the operator of the contract area with a 60% participating interest, Petronas said.
The contract also provides "progressive profit sharing" as an incentive to contractors to improve oil recovery and increase production, as the risks of developing and producing from matured fields become progressively higher over the lifetime of the fields, it said.
-By Jason Ng, Dow Jones Newswires; +603-2026-1233; firstname.lastname@example.org