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