The Phase 3 NMB project, located in Block PM302, 290km offshore Malaysia, includes the installation of a new Bergading-B Wellhead Platform

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Petronas, Hess achieve first gas production at Phase 3 NMB project. (Credit: Anita starzycka from Pixabay)

Malaysia’s state-owned oil and gas company Petroliam Nasional (Petronas) has announced the first gas production at its Phase 3 North Malay Basin (NMB) project.

The Phase 3 NMB project is located in Block PM302, 290km offshore Peninsular Malaysia.

Hess Exploration and Production Malaysia, a subsidiary of US-based Hess Corporation, operates the block with a 50% stake, while Petronas Carigali owns the remaining 50% stake.

The Phase 3 NMB project was sanctioned in 2019 as part of a multi-phase development, and includes the installation of a new Bergading-B Wellhead Platform.

The new platform is expected to expand the gas supply from Block PM302 by an additional 100 million cubic feet per day (MMscfd), bringing the total production to 400MMscfd.

Petronas serves as custodian of the petroleum resources in Malaysia, through its Malaysia Petroleum Management (MPM) unit.

MPM manages petroleum arrangements in Malaysia and provides stewardship on upstream exploration and production activities in the country.

Petronas Malaysia Petroleum Management (MPM) senior vice president Mohamed Firouz Asnan said: “We are pleased that Hess has taken a long-term view of the business in Malaysia across industry cycles, demonstrating confidence in Malaysia’s upstream industry.

“Together, we have continued to develop the NMB project to unlock the full potential of the block. This is a major milestone for both partners, as the NMB Phase 3 project is key in sustaining Peninsular Malaysia’s gas supply amid rising demand.

“The close collaboration between Block PM302 parties and their service providers in overcoming challenges during the pandemic delivered this successful completion, which reflects the overall resilience of the Malaysian Upstream ecosystem.

Earlier this year, Hess announced its plans to carry out production activities at its NMB project and the Malaysia/Thailand Joint Development Area in the Gulf of Thailand.

The company planned to spend $270m to fund the drilling and facilities along with the work delayed due to Covid-19 and low commodity prices.