Ophir Production (OPSB), the developer of the oilfield, has entered into talks with the resource owner Petronas for the termination of its Ophir risk service contract (RSC). Octanex holds 50% stake in OPSB.
Octanex said: “Efforts to start production following a full process shut-in were unsuccessful and post-drill review studies point to lower than expected oil production from the development. PETRONAS has approved the suspension of the wells.”
The Ophir development located offshore Terengganu, comprises three production wells from a single wellhead platform, the MTC Ledang floating production storage and offloading (FPSO) vessel and export facilities.
Production at the Ophir field began in last October and it has yielded more than predicted gas production with low oil production. Originally, the Ophir field was expected to produce around 5.1 million barrels of recoverable oil.
Octanex said attempts to restart production at the Ophir development after a full process shut-in did not change the situation with post-drill review studies indicating lower than anticipated oil production.
The company said that the termination of the RSC means that Petronas, being the owner of the oil field, will take over its responsibility, agreeing to novation of contracts and return of capital and operating costs that were not reimbursed in the past in the form of proceeds of petroleum sales.
Octanex, in a statement, said: “The interrupted and unexpectedly short nature of the Ophir field life poses challenges for execution of these activities. OPSB is focused on facilitating the activities that will be required once RSC termination is agreed by PETRONAS.”
