Oil and gas exploration firm Octanex has secured limited recourse project finance for the Ophir field development, offshore Terengganu, Malaysia.

The company holds 50% interest in Ophir Production (OPSB), which was awarded the Ophir risk service contract in June 2014.

The other shareholders in OPSB include Malaysia-based Scomi Energy Services and Vestigo Petroleum, which hold 30% and 20% interest respectively.

OPSB will develop the Ophir oil field through a simple stand-alone development, with first oil planned for December 2015.

"OPSB will develop the Ophir oil field through a simple stand-alone development, with first oil planned for December 2015."

The development, which is expected to cost $135m, includes drilling of three production wells from a single wellhead platform producing into a leased tanker for storage and offloading of crude.

OPSB has accepted a letter of offer for syndicated term loan facilities of around $118.76m for 75% of the proposed capital expenditure for the Ophir field development.

It includes 75% of the initial three quarters of operating expenditure and a bank guarantee facility of $13.5m.

A syndicate comprising Malayan Banking Berhad, RHB Bank and United Overseas Bank will provide the finance for about four years.

Octanex chairman Geoff Albers said: "Securing project financing is an important milestone for the development of the Ophir oil field."

Octanex has a portfolio of interests in Australia and New Zealand offshore exploration acreage in the Carnarvon, Southern Bonaparte and Taranaki Basins.

Energy