Petroliam Nasional Berhad (PETRONAS) has formally awarded Talisman Malaysia Limited and PETRONAS Carigali Sdn. Bhd. (PETRONAS Carigali) a new production sharing contract (PSC) for the continuing production, further development and improved recovery of crude oil from the Kinabalu oil fields, which comprise the Kinabalu Main, Kinabalu East and Kinabalu Far East fields, offshore Sabah ("Kinabalu Oil Fields"). The Kinabalu Oil Fields have a number of producing mature fields, with significant development upside.
"We appreciate PETRONAS' vote of confidence and we are very excited about this opportunity," said Paul Blakeley, Talisman's Executive Vice-President of International Operations East. "Talisman has a proven track record of growing production and extending the life of mature fields, and the Kinabalu Oil Fields give us the opportunity to demonstrate this in Malaysia. The PSC is also adjacent to the Talisman operated Sabah exploration block, which provides additional upside in the region."