The final investment decision by three oil firms to develop the KBB gas field comes as the Southeast Asian country seeks to develop its oil resources and stem declining oil and gas production.

The gas field, located in water depths of 100 to 400 meters, is part of the KBB cluster production sharing contract that KPOC operates.

KPOC said the entire project would include a 12-well, two-phase drilling campaign as well as an integrated drilling and production platform.

The project will have 825 million standard cubic feet a day of gas export capacity and 80,000 stock tank barrels per day of oil export capacity, KPOC said.

First production is expected at the end of 2014.

Roughly 135km of pipelines will channel the oil and gas to the Petronas Carigali-operated Sabah Oil and Gas terminal being built at Kimanis, Sabah.

Petronas has a stake of 40 percent in KPOC while ConocoPhillips and Shell own 30 percent each.