UPDATE 1-Murphy Oil wins Malaysian gas supply deal
Mon Feb 26, 2007 5:06am ET
KUALA LUMPUR, Feb 26 (Reuters) - Malaysian state oil firm Petronas agreed on Monday to buy gas from three offshore fields operated by U.S. energy firm Murphy Oil Corp. to supply the country's huge liquefied natural gas plant on Borneo island.
No dollar value was given for the deal.
Murphy, whose partner in the fields is a unit of Petronas, will initially supply 250 million standard cubic feet per day (mmscfd) of gas for five years, rising to 350 mmscfd for another 10 years, from two of the fields, Petronas said in a statement.
Gas from the two fields, Blocks SK309 and SK311, off western Borneo, will be delivered to Petronas's Bintulu plant, it said. Bintulu is the world's largest single LNG complex.
Gas from the third field, Kikeh, to the north, would be taken to Petronas's methanol plant on Labuan island at 120 mmscfd.
Delivery from SK309 and SK311 would start in the first half of 2009 and delivery from Kikeh in January 2008, Petronas said.
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