SapuraCrest Petroleum has entered into a joint venture agreement with Petrofac and Kencana Petroleum to develop and operate the Berantai oil and gas field.

The field is located 150km off the shore of the eastern Malaysian state of Terengganu.

The total development cost is estimated at $800m, which will be shared among the three firms, reports The Wall Street Journal.

Under the agreement, SapuraCrest and Kencana Petroleum will each own a 25% interest, while the Petrofac unit will hold the remaining 50%.

The contract, awarded by Petronas, will be for nine years.