The Prime Minister added that the new oilfield lay 160km off the shores of Peninsular Malaysia, opposite Pahang, at a depth of 76m.
PM 307 PSC is operated by Lundin Malaysia, which has a 75% interest, with Petronas holding the remaining equity.
Bernama quoted Najib as saying: “This (find) is very significant because we have never discovered oil in a commercial quantity at the Penyu Basin. This is a major breakthrough.
“With the discovery, the Bertam oilfield is estimated to have oil reserves of 64 million barrels,” he said after chairing the Biotechnology Implementation Council meeting here.
Based on the findings of commercial and technical feasibility studies, Najib said, crude oil production would begin at the oilfield in the third quarter of 2014 with a projected output of between 17,500 and 20,000 barrels per day.
He added: “This discovery proves there is oil and gas at the southern region of the Malay Basin towards the Penyu Basin.
“The oilfield is located on the continental shelf which is under the jurisdiction of the Federal Government.”
Najib said Pahang was expected to receive a special payment of RM100mil a year once production begins.