Malaysia

June 18, 2012

Petronas and Total have signed a heads of agreement (HoA) to study the development and production potential of K5, a high CO2 gas field offshore Sarawak.

Petronas will utilize its recently established Exploration & Production Technology Centre while Total will investigate the possibility of developing the field in a technically, commercially and environmentally viable manner. The 15 month study will include the development of CO2 management technologies in the areas of carbon capture, transportation and sequestration.

K5, discovered n 1970, is a sour gas field with up to 70% CO2 content located 230km from Bintulu in a water depth of 80m. Should K5 prove feasible, it will be the first gas field developed in Malaysia with more than 50% CO2.

malaysia

The Refinery & Petrochemical Integrated Development (RAPID) project proposed by Petronas is on track for a final investment decision (FID) by mid-2013.

RAPID is to be located in Pengerang, Johor state, where a refinery will have a capacity of 300,000b/d to supply feedstock for a petrochemical complex as well as produce gasoline and diesel in compliance with European specifications. RAPID aims to meet the growing need for specialty chemicals and demand for petroleum and commodity petrochemical products in the Asia Pacific region by 2016.

The project has progressed to the front end engineering and design (FEED) stage, and Petronas is finalizing the selection of potential partners and licensors for various project facilities.

Additionally, Petronas has signed an agreement with BAS F on a 40:60 basis to jointly own, develop, construct and operate production facilities for specialty chemicals and plants for precursor materials within the RAPID complex.

Except for pre-FID works, no other contract has been tendered or awarded. A pre-qualification exercise for various tender packages will be undertaken in stages, the earliest expected in the 3Q.

The Sultan of Johor Sultan Ibrahim Sultan Iskandar is pictured above (third from left) being briefed on the RAPID project.

Petronas and Total have signed a heads of agreement to study the development and production potential of K5, a high CO2 gas field offshore Sarawak. Petronas will use its recently established Exploration and Production Technology Centre while Total will investigate the possibility of developing the field in a technically, commercially and environmentally viable manner. The 15 month study will include the development of CO2 management technologies in the areas of carbon capture, transportation and sequestration.

K5, discovered in 1970, is a sour gas field with up to 70% CO2 content located 230km from Bintulu in a water depth of 80m. Should K5 prove feasible, it will be the first gas field developed in Malaysia with more than 50% CO2.



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