Sapura Energy, partners to develop Sarawak gas fields

PETALING JAYA: Sapura Energy Bhd unit Sapura Exploration and Production (Sarawak) Inc and its partners have taken a final investment decision to develop the first phase of the Gorek, Larak and Bakong fields in the SK408 production sharing contract.

Sapura Energy has partnered Petronas Carigali Sdn Bhd and Sarawak Shell Bhd for this venture.

“The development of the SK408 gas fields further strengthens Sapura Energy’s position in Malaysia as a significant partner and supplier of natural gas to one of the world’s largest LNG production facilities, the Petronas MLNG complex in Bintulu,” said Sapura Energy president and group chief executive officer Tan Sri Shahril Shamsuddin in a statement.

“The final investment decision represents a critical milestone as we further progress towards unlocking the value of our gas fields thus, providing clear visibility of our longterm gas monetisation plans,” he added.

The company said that this decision for the investment follows the approval from Petronas and concurrently, the signing of the key terms to the gas sales agreement for phase 1 of the SK408 gas field development.

According to the statement, the fields under the SK408 gas field development project were part of the discoveries made by Sapura E&P in its 2014 drilling campaign.

The fields will be developed as three separate wellhead platforms tied back to the existing processing facility and to the MLNG complex, it added.

The company said the SK408 gas fields will be Sapura E&P’s second major upstream gas development project in East Malaysia, after the successful development and commencement of production from the SK310 B15 gas field.