Petrofac signs two MOUs with Petronas

13th Jul 2011 11:17

Oilfield services provider Petrofac has signed two memoranda of understanding (MOU) with Malaysian state-run company Petronas. One of the agreements record the undertaking by both the companies to accelerate production from block PM304, offshore Peninsular Malaysia, which includes Cendor and West Desaru fault blocks. Petrofac has a 30% equity stake in the block.In the first stage of the development, block PM304 operator Petrofac intends to accelerate the development of the West Desaru fault block by introducing an early production system to utilise current export facilities, upgrade and deploy a mobile offshore production unit that is being purchased.Petrofac expects to bring forward first oil production from West Desaru into the fourth quarter of 2012, while the second phase development of the Cendor fault block is expected to start up in the second quarter of 2013, bringing the overall production capacity of block PM304 to around 60,000 barrels per day.The second agreement will involve a technical training partnership between Petrofac traning services and the Institut Teknologi Petroleum Petronas. At 11.30 AM, shares of Petrofac were trading up 0.9% at 1,500p in London.AR