Ophir Oil Field

 

The Ophir field, offshore Peninsular Malaysia, has been developed by Ophir Production Sdn Bhd (OPSB) under a Risk Service Contract (RSC), entered into by OPSB as Contractor, with PETRONAS, the resource owner, as Principal. Octanex holds a 50% shareholding interest in OPSB.

The Ophir development consists of a wellhead platform, three production wells and export via a floating production storage and offloading (FPSO) vessel.

Production commenced at the Ophir field in October 2017. Higher than predicted gas production was observed, with oil production below anticipated levels. Efforts to restart production following a full process shut-in were unsuccessful and post-drill review studies point to lower than expected oil production from the development.

OPSB has written to PETRONAS requesting termination of the Ophir RSC. RSC termination would result in PETRONAS, as the owner of the field, assuming responsibility for the field, accepting novation of contracts and reimbursement of capital and operating costs not previously reimbursed via proceeds of petroleum sales. The interrupted and unexpectedly short nature of the Ophir field life poses challenges for execution of these activities. OPSB is focused on facilitating the activities that will be required once RSC termination is agreed by PETRONAS.

PURSUING NEAR TERM PRODUCTION