Malaysian oil and gas company Petronas has given its consent for a revised development plan of the Ophir oil field, located offshore Malaysia.
According to Octanex, an Australian company with a share in the development, the revised plan will decrease the development costs by 30 percent.
As the low oil prices environment forced oilfield services providers to cut the prices of their respective services, the Ophir oil field partners chose to use the opportunity.
Octanex said that, as a result of the reduced industry costs, the original FDP was altered, resulting in a revised capital budget of $90 million.
The Ophir field will be developed through three production wells, a wellhead platform and a leased FPSO vessel.
In a statement on Tuesday, Octanex COO, Rae Clark said: “This is a significant milestone for Octanex representing the successful culmination of a two-year effort at repositioning Octanex as a future oil producer. The revised project plan enhances the economic potential of the Ophir development reflecting the reduced costs offered by the current low oil price environment.”
Octanex has a 50 percent stake in the oil field via its 50 percent stake in Ophir Production Sdn Bhd (OPSB). Other OPSB partners are Scomi Energy Services (30%), and Vestigo Petroleum (20%). Vestigo Petroleum, is a subsidiary of Petronas, established in 2013 to focus on development and production activities from small, marginal and mature fields in Malaysia and abroad.
Offshore Energy Today staff