Exxon kicks off operations at $2.6 billion Malaysian EOR Project

HOUSTON — Exxon Mobil Corp. and its Malaysian partner Petronas have kicked off operations at a massive enhanced oil recovery project about 200 kilometers offshore of Peninsular Malaysia.

The Tapis EOR project is one of the largest offshore enhanced oil recovery projects in Southeast Asia and represents a $2.6 billion investment by Exxon Mobil and its joint-venture partner Petronas Carigali Sdn Bhd, Exxon said in a press release.

Operations began late last week when the newly installed Tapis R platform – the central component of the wider EOR effort – began pumping water and gas into existing wells in order to drive more of the hydrocarbons to the surface.

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The whole Tapis EOR project will be run by Exxon Mobil under a 2008 production sharing contract between the Irving, Texas-based company’s subsidiary, ExxonMobil Exploration and Production Malaysia, and Malaysia’s oil and gas company Petronas. Exxon and Petronas each own a 50 percent interest in the venture.

The Tapis R platform began construction in November 2011 and is equipped with compression capacity for 390 million cubic feet per day of gas and a water injection capability of 270,000 barrels per day. The Tapis R platform also includes living quarters for 145 people and an oil pipeline that connects wells to an onshore terminal.

Workers began installing the infrastructure for the Tapis EOR project in 2013.

The Tapis R platform will be supported by the smaller Tapis Q platform, access bridges and a 50-kilometer network of pipeline and cables also installed as part of the project.

Exxon’s Malaysian subsidiary operates 34 platforms in 12 fields and has an interest in another 10 platforms in five fields in the South China Sea. Those fields supply about 20 percent of Malaysia’s crude oil output and condensate and 50 percent of Peninsular Malaysia’s natural gas needs, Exxon said in its press release.

Malaysia produced 504,000 barrels of crude oil per day in 2013 and pumped 2.1 trillion cubic feet of natural gas in 2012, according to the U.S. Energy Information Administration.