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Shell, Petronas Drill Malaysia’s Deepest Oil, Gas Well

YahooNews: Shell, Petronas Drill Malaysia’s Deepest Oil, Gas Well

Friday August 20, 10:18 AM

SINGAPORE (Dow Jones)–Shell Malaysia and Petronas Carigali Sdn. Bhd. Friday said they have successfully drilled the deepest oil exploratory-appraisal well in Malaysia, and that they hope to start production from it by end-August.

Shell Malaysia said in a statement that the 6,339-metre-deep well, located at Angsi oil and gas field 250 kilometers offshore Sarawak, East Malaysia, was penetrated to a reservoir that is believed to contain 4.5 million barrels of oil.

The site is a production sharing venture operated by Shell Malaysia, a unit of Royal Dutch/Shell Group (RD), which holds a 70% interest. Petronas holds the remaining 30%.

The field is already producing 100,000 barrels of oil and 200 million cubic feet of gas a day, Petronas said.

“We are delighted with this new discovery. Shell and Carigali are working to bring this new discovery on-stream quickly to help meet the growing gas demand in the region,” said Jon Chadwick, chairman of Shell Malaysia.

Petronas Carigali is the upstream arm of Petronas, Malaysia’s state-owned oil and gas company.

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