Murphy Oil Announces Final Investment Plan for Malaysia FLNG Project

Murphy Oil announced last week that a final investment decision for the floating LNG liquefaction (FLNG) project at the Rotan field in Malaysia has been reached, and it is on track to achieving first gas by 2018, reports Platts.

The company operates Block H offshore Sabah, which will provide the gas for the project. Since the Rotan discovery in 2007, the company has made several other natural gas discoveries nearby. The 1.5 million mt/year FLNG project will be undertaken in conjunction with Petronas.

The project is now fully sanctioned by both parties and the oil-linked gas terms agreed, Platts quoted Murphy CEO Roger Jenkins as saying. “This is a major milestone for both companies." 

Petronas had said in June last year that it was aiming for FID by the end of 2013, added Platts.

"We are planning on first gas in 2018 with a 10-year peak gas rate near 207 million [cubic feet] a day gross or 150 million [cubic feet] per day net," Jenkins said.

According to Platts, this will be Petronas' second FLNG plant in Malaysia, after it reached an FID in 2012 on a 1.2 million mt/year plant at the Kanowit field offshore Sarawak. 

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