The CEO of the Kuwait Foreign Petroleum Exploration Company (KUFPEC) Sheikh Nawaf Saud Al-Sabah told MEED Magazine that the company is negotiating with the Malaysian government on the financial terms related to a major gas discovery off the coast of Malaysia, reports Al-Anba daily. In February, KUFPEC announced its largest ever discovery of hydrocarbons by drilling a well about 90 kilometers off the Malaysian coast. In an interview with MEED Magazine, Sheikh Nawaf explained that the work on the initial engineering designs for the development of the well will begin once the financial terms are agreed upon.
The evaluation process is underway, and the next step is to agree with the Malaysian side on the financial terms that will govern the development. The process will then enter the phase of initial engineering design in order to design the concept that will govern the work for building the domains and facilities. In the end, the process will move to the final investment phase, and then the production will start. Regarding the sequence of these procedures, Sheikh Nawaf said it still takes several years before starting the production, as is the case with large discoveries.
According to the magazine, before this discovery was found, KUFPEC’s team of geologists and geophysicists re-analyzed the seismic data already obtained for the area and realized that a previous well had been drilled in the area by another company and that work had stopped before the discovery of the giant reservoir. Although the Malaysian government asked KUFPEC not to disclose the amount of gas believed to contain, Sheikh Nawaf indicated that the recent evaluation of the well is likely to be double the previous initial estimates of several trillions of cubic feet of gas. He praised the relationship between the company and the Malaysian authorities, describing it as excellent. Sheikh Nawaf said, “We have been there for several years. It is something that we are very proud of and we have all expectations that we will do so as quickly as possible. It is clear that many of the virtual meetings differ from the actual meetings, but we are trying our best.”
SOURCE ; ARAB TIMES