Japan's JX Nippon Oil & Gas Exploration Corp., a wholly-owned unit of JX Holdings, says Petronas has approved the field develoment plan for the Layang gas field.
JX Nippon intends to develop the field off the coast of the Malaysia's Sarawak state on Borneo, and start production with a floating production, storage and offloading (FPSO) vessl in 2Q 2016.
Layang field is about 8km (5mi.) east of the producing Helan gas field, in block SK10.
JX Nippon anticipates initial production of 100 MCF/d of natural gas (17,000 boe/d) and about 7000 b/d of condensate and crude.
Natural gas will be produced into a 200km pipeline to the MLNG Tiga Sdn. Bhd. operating liquefaction facility in Bintulu, Sarawak (partly owned by JX Nippon), and then sold as liquefied natural gas (LNG). Layang condensate and oil is planned to be shipped from the FPSO.
JX Nippon holds 78.7% in the Japanese venture that holds 75% in block SK10. The remaining 25% is owned by Malaysia's Petronas Carigali.
Other shareholders in the Japanese venture are Inpex Corp. (15%) and Mitsubishi Corp. (6.3%).