One of the challenge for the petroleum industry sector in Malaysia is to monetise oil resources at earliest possible timing. After production since early 1970's, there are about 3.43 billion barrels of remaining oil reserves located offshore Malaysia. About 550 million barrels of the oil reserves are contained in some 62 fields with estimated ultimate recovery (EUR) of less than 30 million stock tank barrels (MMstb) per field. For these small oil fields, efforts undertaken by the petroleum producers in Malaysia, for examples; PETRONAS Carigali Sendirian Berhad (PCSB), Esso Production Malaysia Incorporated (EPMI) and Sarawak Shell Berhad / Sabah Shell Petroleum Company (SSB/SSPC), have yielded achievements which have begun to pave paths for prospective successes in developing the small oil fields.

In addressing the challenge to monetise oil reserves expeditiously, the petroleum producers in Malaysia have harnessed their efforts to achieve cost effective development for the reserves. Cost effective developments lead to improved project profit margin. Optimization efforts on small oil field development concepts have been aggressively pursued since the middle 1990's. Depending on development concept adopted, the development costs estimated for small fields offshore Malaysia have since improved from over RM 400 million (USD 160 milion) to less than RM 100 million (USD 26 million) per platform excluding the development drilling costs. The difference in cost is the result of continuous efforts in development concepts optimisation.

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