Conoco Inc. announced on November 1st that its bid to acquire a stake in two exploration and production blocks offshore Malaysia had been approved by state oil company Petronas.
Conoco will own half of the 80 percent stake in the two blocks held by Royal Dutch/Shell, giving the company access to 1.5 million acres of potential oil and natural gas fields.
The two blocks are located near the Baram/Champion deltas of northwest Borneo, where 13 million barrels of oil equivalent have already been discovered. Conoco is to drill in deepwater blocks designated as “G” and “J,” in addition to a region off the Malaysian state of Sabah.
Conoco, also the operator of the South Natuna Sea block B production-sharing contract in Indonesia, is to supply 1.5 trillion cubic feet (tcf) of natural gas to Malaysia over a 20-year period from 2002 under a ground-breaking deal signed between the two countries in September.
Conoco and its partners in block B will also supply 43.1 percent of a 2.5 tcf sales contract to transport gas from Indonesia to Singapore beginning January 2001.