Malaysian national oil company Petronas has started oil production at the offshore Tembikai field under the Tembikai-Chenang Cluster small field risk service contract (RSC).

Located offshore Terengganu, the oil field is at a water depth of around 230ft and is the fourth RSC to start production after the Kapal-Banang-Meranti (KBM) Cluster, Balai Cluster and Berantai RSCs.

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It has been developed and will be operated by a Petronas subsidiary Vestigo Petroleum.

"Tembikai is the first small field RSC that has been successfully executed by a Petronas Carigali’s wholly owned subsidiary."

Petronas Malaysia Petroleum Management vice-president Muhammad Zamri Jusoh said: "Tembikai is the first small field RSC that has been successfully executed by a Petronas Carigali’s wholly owned subsidiary.

"This achievement marks another significant milestone for Petronas in its journey to monetise and add value to small and stranded oil fields despite the challenges currently faced by the industry."

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The project involves installation of a central processing platform (CPP) which will be connected to a floating storage and offloading (FSO) vessel with a flexible sub-sea pipeline.

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At present, the project is producing oil from a single well at the site. Two more wells are being drilled by Petronas.

The three wells combined are expected to produce around 2,000 barrels of oil per day (bopd) at peak production.

The Malaysian firm has five more RSCs apart from Tembikai, which includes Berantai, Balai Cluster, KBM Cluster, Tanjong Baram and Ophir.