Ninth gas discovery offshore Sarawak will enhance SK408’s viability
KUALA LUMPUR: Sapura Energy Bhd (Sapura Energy) and partners Sarawak Shell Bhd (Sarawak Shell) and Petronas Carigali Sdn Bhd’s (Petronas Carigali) ninth gas discovery offshore Sarawak is expected by analysts to further enhance the viability of the SK408 project cluster by leveraging on the common infrastructure, pipelines and facilities .
In a filing on Bursa Malaysia, Sapura Energy through whollyowned subsidiary, Sapura Exploration and Production (Sarawak) Inc (Sapura E&P) and the group’s partners Sarawak Shell and Petronas Carigal announced its ninth gas discovery offshore Sarawak, following the completion of its 2017 drilling campaign within the SK408 Production Sharing Contract (PSC).
Sapura Energy announced that the Pepulut-1 exploration well located offshore Bintulu, Sarawak in Block SK408 was drilled and encountered high quality reservoir.
“The Pepulut-1 exploration well was drilled and encountered high quality reservoir. The well is located offshore Bintulu, Sarawak in Block SK408.
“This discovery is a continuation of Sapura E&P’s exploration successes in the highly prolific area of SK408,” Sapura Energy said.
Sapura Energy added that the discovery is another significant milestone for the group following the recent announcement of its development plans for Gorek, Larak and Bakong fields as phase 1 in the SK408 PSC.
According to AmInvestment Bank Bhd (AmInvestment Bank), eventhough the estimated reserve for Pepulut has not been revealed yet, pending the signing of a gas sales agreement with Petroliam Nasional Bhd (Petronas) which underpins project feasibility, any estimate is likely to be categorised as 2C, not 2P at this juncture.
“Given that this field is in the vicinity of the Gorek, Larak and Bakong fields of phase 1 in the SK408 PSC, which achieved final investment decision in April this year, we expect this discovery to further enhance the viability of this project cluster by leveraging on the common infrastructure, pipelines and facilities,” the research firm said.
As the first three fields will be developed as three separate wellhead platforms tied back to the existing processing facility and to the MLNG complex in Bintulu, AmInvestment Bank expected Sapura Energy’s fabrication yard utilisation to improve significantly towards the end of the year.
“The group already secured two Hess wellhead platforms and the Pegaga central processing platform from Mubadala Petroleum.”