REPSOL ON TRACK TO MEET GAS OUTPUT TARGET
Bunga Pakma’s first production at lower cost than expected, says unit director
REPSOL Oil & Gas Malaysia Ltd is on track to meet the company’s target after the first gas production at the Bunga Pakma Joint Development Area.
Repsol Malaysia business unit director Jorge Milathianakis said the production at Bunga Pakma’s first oil well was the result of a collaboration with partners Petroliam Nasional Bhd (Petronas) and PetroVietnam.
He said the first gas production was not only implemented on schedule, but also at a lower cost than expected.
“The main contributing factor of the success of this project is due to the strong support from our two partners,” said Milathianakis, adding that most of the gas produced would be purchased by Vietnam and the balance used in Malaysia.
He said besides the strong support of Petronas and PetroVietnam, the project also prided itself in the ability of local workers, who formed the bulk of staff at the Bunga Pakma project located near the Malaysia-Vietnam coastal border.
Milathianakis said on May 12, the Bunga Pakma -A (BP-A) platform successfully produced 50 million cubic feet of gas and it was expected to keep the same output rate on a daily basis.
“To date, Repsol and our two partners have invested more than RM678.5 million (US$170 million) to make this project a success.
“So far, we are very satisfied with the outcome,” he said following a visit to the Bunga Pakma platform, here, recently.
According to Milathianakis, the Bunga Pakma platform was expected to have a production lifespan of up to 15 years. It uses new technology, including sub-sea cables for energy transmission and fibre optics for communications, as well as advanced electro hydraulic and valve systems.
He said BP-A was the second success for the company in the oil and gas industry after the Kinabalu Development Area project in Sabah waters.
Meanwhile, Ferdinando Rigardo, Repsol regional executive director for Asia and Russia, said the Bunga Pakma project had more than 1,000 local workers and recorded 1.44 million hours of work time without any injury.
“Malaysia is an important investment destination. Repsol is focused on expanding its business in the country and is committed to creating more jobs and business opportunities in the country,” he said.