Newfield to participate in Malaysian PSCs, establish new focus area

By OGJ editors
HOUSTON, May 27 -- A subsidiary of Houston-based independent exploration and production firm Newfield Exploration Co. signed two production-sharing contracts (PSCs) off Malaysia in partnership with Petronas Carigali Sdn. Bhd., the exploration and production subsidiary of Malaysia's state-owned Petronas. The PSCs pertain to two blocks: PM 318 and deepwater Block 2C.

Petronas Carigali will operate the PSC for PM 318, which covers about 400,000 acres off Peninsular Malaysia. Newfield holds a 50% interest in PM 318. Deepwater Block 2C covers more than 1.1 million acres off Sarawak and is operated by Newfield with a 60% interest.

The partners will acquire and evaluate 3D seismic data over the next year and are targeting to begin drilling in 2005.

"This transaction establishes a new international growth area for Newfield," said David A. Trice, Newfield president and CEO. "These blocks contain an interesting portfolio of prospects and leads ranging from low risk, moderate potential to high risk, high potential exposure. Our experience in low cost offshore operations will help us to build a business in Malaysia."