Guntong

Guntong Oil and Gas Field Profile

Location

The Guntong Oil and Gas Field is located offshore in Malaysia, specifically within the PM9 concession/block. The exact coordinates are 5.643°N, 105.044°E.

Operator and Ownership

The field is operated by ExxonMobil Exploration and Production Malaysia. The ownership is shared between ExxonMobil (78%) and Petronas Carigali, the Malaysian national oil company, which holds a 22% stake.

Discovery and Production History

The Guntong Oil and Gas Field was discovered in 1978. The field began production in 1985 and has been in operation for over three decades. Initially, the projected lifespan of the field was about 20 years, but advancements in technology, particularly enhanced oil recovery (EOR) methods, have extended its operational life.

Production and Reserves

As of 2022, the field produces approximately 6.13 million barrels of crude oil and condensate per year. The remaining recoverable reserves are estimated at 22.66 million barrels as of 2023.

Field Characteristics

The Guntong field is a conventional oil field located in shallow waters. The field has undergone several enhancements, including EOR projects, to maximize production. One notable project involved drilling six new wells and implementing EOR techniques, which included new flowlines, wellbay modifications, and new equipment and system tie-ins, all within a budget of $200 million.

Technological and Operational Aspects

ExxonMobil has employed advanced EOR methods to maintain and boost production at the Guntong field. These methods are particularly important for brownfield projects like Guntong, where existing infrastructure is utilized to extract more oil. The field's operations are part of a broader strategy by ExxonMobil and Petronas to enhance production from mature fields in Malaysia.

Employment and Local Impact

ExxonMobil's operations in Malaysia, including the Guntong field, employ approximately 1,700 people, with 98% of them being Malaysian nationals. The company's activities contribute significantly to Malaysia's oil and gas production, with ExxonMobil responsible for over half of Peninsular Malaysia's natural gas and a fifth of its oil production.

Production Sharing Contract (PSC)

The Guntong field is part of a 25-year production-sharing contract between ExxonMobil and Petronas, which includes provisions for EOR and further drilling to boost output. This contract covers seven mature offshore fields, including Guntong, Tapis, Seligi, Semangkok, Irong Barat, Tebu, and Palas.

Challenges and Future Outlook

Despite the successes in extending the field's lifespan, there are challenges associated with updating the infrastructure and pipelines of mature fields like Guntong. The focus on domestic production and extracting more from existing wells aligns with Petronas's strategy to prioritize Malaysian oil and gas reserves over overseas exploration.