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JX Nippon Oil & Gas Exploration (Malaysia) has commenced commercial gas production from the Layang Field off the shore of Malaysia.

Layang Field is located nearly 7km east of the producing Helang Gas Field in Block SK10, which is operated by JX Nippon Oil & Gas Exploration with a participating interest of 75%.

The remaining 25% is owned by Petronas Carigali.

Natural gas produced from both fields is set to be supplied through subsea pipelines to the MLNG Tiga, a liquefaction plant situated in Bintulu, Sarawak.

The liquefaction plant is partly owned by JXTG Nippon Oil & Energy. The natural gas will then be sold as LNG to the company’s customers following liquefaction, including those in Japan.

"Natural gas produced from both fields is set to be supplied through subsea pipelines to the MLNG Tiga, a liquefaction plant situated in Bintulu, Sarawak."

Initial gas and condensate production from the Layang Field is estimated about 12,000 barrels of oil equivalent a day (boed).

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According to the medium-term management plan released last month, the company will allocate its business resources on a preferential basis to various regions such as Southeast Asia, where it will be able to exercise its strength by following a strategy of selection and concentration.

The company also proposes to maintain and strengthen its position in Malaysia and improve its capacity to raise revenue via E&P business activity as an active operator in the country.

JX Nippon Oil & Gas Exploration currently holds 78.7% stake in the company, while Inpex and Mitsubishi own 15% and 6.3% working interest respectively.