KUALA TERENGGANU: Repsol Oil and Gas Malaysia Ltd is on track to meet the company's target after starting to produce gas at one of six oil wells in the Bunga Pakma Joint Development Area.
Repsol Malaysia Business Unit director Jorge Milathianakis said the production at Bunga Pakma's first oil well was the result of collaboration with partners Petronas and PetroVietnam.
He said the first gas production was not only implemented on schedule, but also at a lower cost than expected.
"The main contributing factor of the success of this project is due to the strong support from our two partners,” Milathianakis said, adding that most of the gas produced will be purchased by Vietnam and the balance used in Malaysia.
He said besides the strong support of Petronas and PetroVietnam, the project also prides itself on the ability of local workers who form the bulk of staff at the Bunga Pakma project located near the Malaysia-Vietnam coastal border.
Milathianakis said on May 12, the Bunga Pakma -A (BP-A) platform successfully produced 50 million cubic feet of gas and it is expected to maintain the same production rate on a daily basis.
"To date, Repsol and our two partners have invested more than RM678.5 million (US$ 170 million) to make this project a success.
"So far, we are very satisfied with the outcome," he told NSTP following a visit to the Bunga Pakma platform recently.
According to Milathianakis, the Bunga Pakma platform is expected to have a production lifespan of up to 15 years. It uses new technology including sub-sea cables for energy transmission and fiber optics for communication, as well as advanced electro hydraulic and valve systems.
He said BP-A was the second success for the company in the oil and gas industry after the Kinabalu Development Area project in Sabah waters.
Meanwhile, Ferdinando Rigardo, Repsol regional executive director, Asia and Russia, said the Bunga Pakma project has over 1,000 local workers recording 1.44 million hours of work time without any injury.
"Malaysia is an important investment destination. Repsol is focused on expanding its business in the country and is committed to creating more jobs and business opportunities in the country," he said.
Repsol has operated in Malaysia since May 28, 2011. The launch of the Bunga Pakma platform was officiated by the signing of a plaque by representatives of the three partner companies.
Repsol was represented by Milathianakis while Petronas was represented by its head of production and management operations, Ruslan Ghani and PetroVietnam by its petroleum contract management manager Vuong Minh Quang.