JX Nippon to develop Layang field using FPSO (Malaysia)

JX Nippon Oil & Gas Exploration has been given an approval to proceed with development of the offshore oil & gas field in Malaysia.

The company has informed that its subsidiary, JX Nippon Oil & Gas Exploration (Malaysia) Limited, the Operator of Block SK10 offshore Malaysia with a participating interest of 75%, has recently received the approval of the Field Development Plan for Layang Field in Block SK10 from PETRONAS, the national oil company of Malaysia.

Layang Field is located approximately 8 km east of the producing Helang Gas Field in Block SK10. For the development of Layang Field, the Floating Production, Storage and Offloading system (FPSO) is planned to be installed, and the commercial production is expected to start in the second quarter of 2016 with the initial estimated incremental production of Helang/Layang gas to be about 100 MMscfd and Helang condensate/Layang oil/Layang condensate to be about 7 kbd.

Natural gas produced from Layang Field, together with Natural Gas from Helang Gas Field, is planned to be supplied through subsea pipelines of approximately 200km long to the MLNG Tiga Sdn. Bhd. liquefaction plant in Bintulu, Sarawak, which is partly owned by JX Nippon Oil & Energy Corporation. The natural gas will be sold as LNG after liquefaction, while the condensate and Layang oil is planned to be shipped from the FPSO.

The company said it intended to improve and strengthen its natural-gas-supply-chain by the production from multiple gas fields, Helang Gas Field and Layang Field.

“With the current commitment in a total of 7 blocks including SK10, we consider Malaysia as one of our important core countries and will seek to increase our activities and presence in Malaysia,” JX Nippon Oil & Gas Exploration said in a statement.