Exxon Affiliate Signs Major New Long-Term Gas PSC With Malaysia's PETRONAS

Jun 23, 1997, 01:00 ET from Exxon Corporation

    IRVING, Texas, June 23 /PRNewswire/ -- Esso Production Malaysia Inc.
 (EPMI), an affiliate of Exxon Corporation (NYSE:   XON), and co-venturer
 PETRONAS Carigali Sdn. Bhd., today signed a major new long-term Gas Production
 Sharing Contract (GPSC) with PETRONAS, the national oil company of Malaysia.
 Combined gas sales of over 12 trillion cubic feet from the GPSC and EPMI's
 existing Natural Gas Project and Sales Agreement (NGPSA) are expected to meet
 about two-thirds of the projected gas demand in Peninsular Malaysia for more
 than 25 years.
     Esso Chairman and Chief Executive Officer Philip J. Dingle signed the GPSC
 on behalf of EPMI while PETRONAS was represented by its President and Chief
 Executive Officer Tan Sri Dato' Hassan Marican and PETRONAS Carigali was
 represented by its Director Dato' Hamzah Bakar.
     Exxon Chairman Lee R. Raymond and PETRONAS Chairman Tan Sri Azizan also
 were present at the signing ceremony.  In his speech Mr. Raymond said, "EPMI
 is looking forward to continuing to be a part of the development of these gas
 fields with PETRONAS Carigali to help meet Malaysia's rapidly growing energy
 needs for many years to come.  The signing of the GPSC is a major step that
 provides for the development and sale of gas from a significant portion of the
 gas resources discovered by EPMI over the last several years.  This
 arrangement expands EPMI's relationships with PETRONAS and with PETRONAS
 Carigali, with whom we already have several successful co-ventures."
     The GPSC covers development of natural gas from 15 fields by EPMI and
 Carigali and also provides for the sale of the gas produced to PETRONAS.
 Transportation to end users will be through the Peninsular Gas Utilization
 Project infrastructure operated by PETRONAS Gas Bhd.  Condensate sales will be
 made from the EPMI-operated Terengganu Crude Oil Terminal.
     The GPSC also involves the integrated development of the Angsi oil and gas
 field.  This will be the first large scale combined oil and non-associated gas
 development to be installed offshore Peninsular Malaysia.  Engineering work on
 this field will begin immediately, with first production scheduled in 2002.
     Under the terms of the GPSC, EPMI and PETRONAS Carigali each will have a
 50 percent participating interest, with EPMI having operating responsibility
 for the fields around its existing hubs at Jerneh and Lawit and in the 1995
 Joint Venture area, while PETRONAS Carigali will operate the new Angsi field
 and nearby platforms.  New platforms and associated infrastructure will be
 installed over the next 15 years to develop the gas resources included in the
 new GPSC.  Significant modifications also will be made to existing operating
 platforms to provide for gas cap production.  Total investment is projected to
 be almost US$5 billion (RM12 billion).

SOURCE Exxon Corporation