Japan's JX Nippon Oil & Gas Exploration's Malaysia subsidiary is planning two additional exploration wells offshore Malaysia after confirming a deepwater oil discovery.
The discovery was made at the Bestari-1 exploration well in deepwater Block R, located offshore East Malaysia covering an area of 672sq km with water depth ranging from 100-1400m.
Preliminary findings point to an approximate 70m column of oil bearing sands across multiple horizons, announced joint venture partner INPEX.
The JV will analyze and evaluate the data retrieved from the well, and proceed with plans to drill two exploratory wells to assess the possibility of new oil and natural gas deposits.
Japan Oil, Gas and Metals National Corp. (JOGMEC), is to cover up to 50% of exploration expenditures incurred by INPEX Offshore through equity capital.
JX Nippon is the operator of the Block R production sharing contract with 27.5% interest. Partners include INPEX, through its wholly owned subsidiary, INPEX Offshore South West Sabah, (27.5%), PETRONAS CARIGALI Sdn. Bhd. (25%) and Santos Sabah Block R (20%).
Image: Map of Block R. From JX Nippon Oil & Gas Exploration Corp.
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