New PETRONAS gas discovery off Bintulu

PETALING JAYA: Petroliam Nasional Bhd (PETRONAS) has discovered gas in its Cengkih-1 exploration well in Block SK 320 in the Central Luconia Province, about 220km off the coast of Bintulu, Sarawak, Malaysia.

In a statement yesterday, the national oil company said the Cengkih-1 exploration well was successfully drilled to a depth of 1,680m in August 2022, hitting more than 110m gas column in Miocene Cycle IV/V pinnacle carbonate reservoirs, firming up more gas resources within Block SK320.

Mubadala Development Co Oil and Gas Ltd operates the block with a 55% participating interest in the production sharing contract.

PETRONAS Carigali Sdn Bhd holds 25%, while Sarawak Shell Bhd holds the remaining 20%.

PETRONAS senior vice-president of Malaysia Petroleum Management (MPM), Mohamed Firouz Asnan, said: “We are thrilled by this latest discovery in Cengkih-1, building on the string of exploration successes in the Central Luconia region.

“The discovery confirms the large potential of this proven carbonate play type in Central Luconia.

Mohamed Firouz added that the monetisation of the discovery can be expedited at a lower cost, given the proximity to the many existing facilities, including that of Pegaga, which started production in March this year.

“This latest success was enabled by the close partnership between PETRONAS and its petroleum arrangement contractors in expanding the resource base to meet the rising demand for gas in Sarawak, including the PETRONAS liquefied natural gas complex in Bintulu.”