Kuala Lumpur, April 12 - ExxonMobil Exploration and Production Malaysia Inc. (EMEPMI), a subsidiary of Exxon Mobil Corporation, announced that it has successfully started up production of non-associated gas from the Tabu field, 200 kilometres offshore Terengganu.

The Tabu non-associated gas (NAG) project, completed on schedule and within budget, was developed underthe Gas Production Sharing Contract (GPSC) between EMEPMI as the operator, and co-venturer PETRONAS Carigali Sdn Bhd (PCSB) to help meet increasing gas demand in Malaysia. EMEPMI and PCSB each holds a 50 percent participating interest in the GPSC.

"We are pleased with the start-up of Tabu NAG, which will contribute further towards Malaysia's energy security," said EMEPMI Chairman Liam M. Mallon.  "This project is another example of EMEPMI's commitment to work together with PCSB and PETRONAS to maximise the country's energy resources and to apply technological advances to our Malaysian operations."

The total project development cost is estimated at about RM673 million (US$182 million).  The project required 790,000 work hours to complete and was executed without a single lost-time injury to workers.  Gas production is anticipated to peak at 180 million cubic feet per day.

EMEPMI is currently producing oil from the Tabu field via two platforms. The Tabu A and Tabu B platforms, installed in 1986 and 1995 respectively, are located about four kilometres apart and some seven kilometres from the Guntong E platform.

Production from the Tabu NAG development will be processed on the Guntong E central compression platform before transmission to PCSB's Angsi platform and subsequently to the EMEPMI-operated Onshore Slugcatcher.  For this purpose, two new pipelines were installed: a 16" pipeline from Tabu B to Tabu A, and 28" pipeline from Tabu A to Guntong E. Facility modifications, instrumentation and controls tie-ins were also carried out at EMEPMI's Tabu A, Tabu B, Guntong A and Guntong E platforms.

Prefabrication and offshore construction commenced in 1Q 2006.Offshore installation of the pipelines commenced in September 2006 while drilling began the following month.

EMEPMI is one of Malaysia’s major crude oil producers and the largest supplier of natural gas to Peninsular Malaysia.  EMEPMI operates under Production Sharing Contracts with PETRONAS.  It currently operates more than 40 platforms and has interests in 17 fields offshore Terengganu, Peninsular Malaysia.