• Telok will provide additional gas supplies for Malaysia's power and industrial needs.
• Project leverages ExxonMobil's industry-leading technology and international best practices to bring the Telok gas development on stream economically to benefit the Malaysian nation.
• Telok development project continues ExxonMobil Exploration and Production Malaysia Inc.'s tradition of strengthening and expanding the capabilities of Malaysian companies supporting oil and gas developments.

KUALA LUMPUR, October 19 - ExxonMobil Exploration and Production Malaysia Inc. (EMEPMI), a subsidiary of Exxon Mobil Corporation, is continuing its long-term investment in Malaysia with the award of a contract to Malaysia Marine and Heavy Engineering Sdn Bhd (MMHE) in excess of RM236 million to fabricate facilities for the Telok gas development project.

The Telok development project is one of several upstream investments announced under Malaysia's Economic Transformation Programme early this year which will see EMEPMI and its co-venturer PETRONAS Carigali Sdn. Bhd.(PCSB) investover RM10 billion in new oil and gas assets to help ensure reliable and sustainable energy supplies for Malaysia.

"The development of Telok is another important step in our partnership with PETRONAS and PETRONAS Carigali to economically and efficiently develop Malaysia’s oil and gas resources to meet rising energy needs," said Hugh W. Thompson, EMEPMI Chairman and President. "Start-up for Telok is expected in 1Q 2013 and will provide additional gas supplies for Malaysia's power and industrial needs.  This will also help promote the overall growth of the natural gas sector," Thompson noted.  

Under the terms of the contract signed, Malaysia Marine and Heavy Engineering Holdings will fabricate and construct the topsides and platform jackets for the Telok project. The project consists of two four-legged gas satellite platforms.  Full well stream gas will be produced via a new 25 km pipeline to the existing Guntong E platform for processing. A total of 14 development wells are planned for the two platforms. Installation of facilities is planned to commence in 3Q 2012.

The two Telok platforms are the latest generation of gas satellite platforms under EMEPMI's "Design One, Build Multiple" concept which capitalises on the efficiencies and learnings from its previous development projects. This concept provides an economical approach to develop smaller fields and significantly shortens construction and installation timelines.

Telok is being developed under the Gas Production Sharing Contract between EMEPMI, PCSB and PETRONAS.  EMEPMI is the operator of the Telok field.  EMEPMI and PCSB each hold a 50 percent interest in the Gas Production Sharing Contract.