S’wak to hold talks with Petronas over discovery of gas fields
KUCHING: Sarawak is expected to benefit from the discovery of two gas fields offshore of the state recently in line with its Commercial Se lement Agreement (CSA) with national oil corporation, Petroliam Nasional Berhad (Petronas).
The Chief Minister’s Office said in a statement yesterday that the state government had been notified of the discoveries at the Lang Lebah-2 exploration appraisal well in Block SK410B in the Central Luconia Province two weeks ago, and at Dokong-1 in Block SK417 this week.
“In this regard, further discussion will be held between Petronas and the State Government based on the terms of the Commercial Se lement Agreement that will bring about greater benefits to both Sarawak and Petronas,” it said.
Sarawak had inked the CSA with Petronas in December last year a er they reached a se lement on the state’s power to impose the State Sales Tax on petroleum products.
Petronas president and group chief executive officer Tengku Muhammad Taufik Tengku Aziz had said during the CSA’s signing in Kuala Lumpur that the agreement would establish a framework between the company and the state government which would see Sarawak more actively involved in its oil and gas.
Under the CSA, Petronas and the state government had agreed to establish a consultative framework to enhance collaboration through a structured and formalised avenue comprising a joint coordination commi ee and an annual strategic dialogue.
Earlier yesterday, Petronas announced the gas discovery from Dokong-1 wildcat exploration well in Block SK417 Production Sharing Contract (PSC), located in the shallow waters of Baram Province, approximately 90 kilometres off the coast of Sarawak.
Petronas Malaysia Petroleum Management senior vicepresident Mohamed Firouz Asnan in a statement said the Dokong-1 exploration well was one of several recent successes in Malaysia’s exploration activities.
“Monetisation of sweet gas discovery in Baram Province can be supported through existing infrastructure and will contribute towards Petronas’ aspiration in delivering reliable, stable and cleaner energy supply to domestic and global markets,” said
He noted that the Dokong-1 discovery reinvigorates the entire exploration landscape of the Baram Province, strengthening the role of the Baram gas supply network as part of the larger Sarawak gas system.
ronas, together with the PSC parties, are currently undertaking further evaluation to determine the full extent of the discovery,” he added.
Petronas’ unit, Petronas Carigali Sdn Bhd has a 20 per cent participating interest in Block SK417 PSC, while the operator, PTT Exploration and Production Public Company Ltd (PTTEP), through its wholly-owned subsidiary PTTEP HK Offshore Ltd, holds 80 per cent participating interest.
The PSC was signed in March 2018 as a result from the Malaysia Bid Round 2017.
According to the statement, the Dokong-1 wildcat exploration well was successfully drilled to a total depth of 3,810 metres in mid-January 2021.
“The discovery of a gas column measuring more than 80 metres in the Middle to Late Miocene Cycle VI-VII reservoirs further validates the potential of the remaining prospects in Baram Province.