BHP Billiton has started exploration activities in Malaysian waters to test the Jujur-1 prospect using the fifth-generation drillship Transocean Deepwater Expedition.

The Jujur-1 exploration well is being drilled in a water depth of 2,514m to a target depth of 5,173m. The company abandoned the Cerah-1 well, which was drilled in block N in the first quarter of 2010.

BHP Billiton contracted the Transocean Deepwater Expedition drillship to work on site for $640,000 per day.

The Jujur-1 prospect has been jointly operated by BHP Billiton and Malaysia’s Petronas Carigali since 2007.

The company plans to drill four wells in this offshore block, according to upstreamonline.com.

Drilling began earlier this month and is expected to take about two months to complete.