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Malaysia : COASTAL ENERGY secures contract from PETRONAS
Publish Date : 10-Jul-2012
Coastal Energy has secured a small field risk service contract (RSC) from Petroliam Nasional Bhd (Petronas).
As per this contract, Coastal Energy will be responsible for the development and production of petroleum from Kapal, Banang and Meranti cluster of small fields offshore Peninsular Malaysia. With 100% equity interest under small field RSC, Coastal Energy will be the operator of the cluster fields. Under RSC, the company is also finalising a deal for a Malaysian company to take part in the contract for 30% to 40% equity interest.
\"We are proud to announce this new contract with Petronas. The KBM Cluster has similar characteristics to our existing fields offshore Thailand and we are confident that our experience and expertise in developing smaller fields quickly and efficiently will prove valuable. There is also appraisal and step-out drilling potential at the KBM Cluster which we plan to exploit during the development program. We expect that this project will generate a rate of return approaching that of our existing assets. This is a significant step for Coastal as we begin to utilize the cash flow from our existing production to diversify our portfolio. We are happy to have Petronas as a partner and are looking forward to working with them on this and potential future projects,\" said Randy Bartley, CEO of Coastal Energy.
Depending upon its performance, Coastal Energy will recover its capital and operating expenditures and will get a remuneration fee, which will be adjusted by key performance indicators (KPIs) based on the timely execution of agreed field development plan and budget.
