Malaysia block to produce oil in 2008

HANOI, June 1 (Reuters) A group of oil firms comprising Petrovietnam, Pertamina and Petronas plans to put into commercial production an oil block off the coast of Malaysia's eastern Sarawak state in 2008, a Petrovietnam official said on Thursday.

''First commercial oil will be available in the fourth quarter of 2008 but output will not be huge,'' said the official, declining to provide details of potential reserves of the field.

In January. officials said initial tests at the block, called SK 305, showed crude flow of 3,000 barrels per day (bpd).

Petrovietnam's investment and exploration arm PIDC holds a 30 percent stake in the project. Indonesian state oil firm PT Pertamina and Malaysia's Petronas [PETR.UL] have 30 percent and 40 percent stakes, respectively.

REUTERS VJ RAI0752