Japan-based JX Nippon Oil & Gas Exploration has discovered oil in the first exploration well in Deepwater Block R, offshore Malaysia.
The company, through the wireline and formation pressure tools, has found around 70m of total net oil pay in primary target Miocene-aged formation of the exploration well Bestari-1.
According to the company, the reservoir depth ranges from 1,860m to 2,702m below sea level, and preliminary wireline evaluations demonstrated good reservoir properties.
In January 2012, JX Nippon signed an agreement for the block production sharing contract (PSC), and has a 27.5% operating interest. Bestari-1 is said to be the first of three commitment wells in the block.
The block covers an area of around 672km², with water depth ranging from 100m to 1,400m.
Other partners in the block include Inpex Offshore South West Sabah with a 27.5% interest, Petronas Carigali with a 25% interest and Santos Sabah Block R with a 20% interest.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below formBy GlobalData
JX Nippon plans to make further investments in Malaysia, in a bid to expand operations in the country.
In December 2013, JX Nippon’s Malaysian subsidiary signed a production sharing contract (PSC) with Petronas for deepwater Block 3F in the Sarawak region.
Block 3F, which is JX’s seventh project in Malaysia, includes a surface area of around 4,200km², as well as an in-water depth ranging from 150m to 1,300m.