In Malaysia, the Company has majority interests in six separate production sharing contracts (PSCs). The Company serves as the operator of all these areas other than the Kakap field. The production sharing contracts cover approximately 2.79 million gross acres. Murphy has an 85% interest in discoveries made in two shallow-water blocks, SK 309 and SK 311, offshore Sarawak. Development projects are ongoing at four fields; Serendah, Patricia, South Acis and Permas, with production scheduled to start up in the second half of 2013 through a series of new offshore platforms and pipelines tying back to the Company’s existing West Patricia infrastructure. The Company has a gas sales contract for the Sarawak area for gross sales volumes up to 250 mmcfd with PETRONAS, the Malaysian state-owned oil company, and has an ongoing multi-phase development plan for several natural gas discoveries on these blocks.
The Company made a major discovery at the Kikeh field (80% working interest) in deepwater Block K, offshore Sabah, Malaysia, in 2002 and added another important discovery at Kakap in 2004. An additional discovery was made in Block K at Siakap. Total gross acreage held by the Company in Block K as of December 31, 2012 was 80,000 acres. The Kakap field in Block K is operated by another company. This field is being jointly developed with the Gumusut field owned by others and Murphy holds a 14% working interest in the unitized development. Kakap development activities continued during 2012 and early production occurred in late 2012, via a temporary tie-back to the Kikeh production facility. The primary Kakap production facility is expected to be completed in 2014. The Siakap oil discovery was made in 2009; the field will be a unitized development operated by Murphy with a 32% working interest. The field is presently under development as a tie-back to the Kikeh field and first oil production is currently anticipated in late 2013.
The Company also has an interest in deepwater Block H offshore Sabah. In early 2007, the Company announced a significant natural gas discovery at the Rotan well in Block H. Since 2007, the Company has followed up Rotan with several other nearby discoveries. In March 2008, the Company renewed the contract for Block H at a 60% interest while retaining 80% interest in the Rotan and Biris discoveries. Total gross acreage held by the Company at year-end 2012 in Block H was 1.40 million acres. Murphy and PETRONAS are evaluating a Floating LNG development for the Block H natural gas discoveries.
Murphy has a 75% interest in gas holding agreements for Kenarong and Pertang discoveries made in Block PM 311, located offshore peninsular Malaysia. Development options are being studied for these discoveries.