SapuraKencana gets nod for its first upstream gas project in Malaysia

PETALING JAYA: SapuraKencana Petroleum Bhd’s wholly-owned subsidiary SapuraKencana Energy Inc (SKE) has secured field development plan (FDP) approval from Petroliam Nasional Bhd (Petronas) for SK310 B15, which is SKE’s first upstream gas project in Malaysia.

With the approval, SKE will begin the development phase for the project and the first gas delivery is targeted for the fourth quarter of 2017.

The B15 field, which was discovered in December 2010, is located within the SK310 Production Sharing Contract (PSC) area, offshore East Malaysia.

The development will comprise a central processing platform with a 35km gas evacuation pipeline to be tied into existing infrastructure. The B15 field is expected to produce 100 MMscfd (million standard cubic feet per day) of hydrocarbon gas for Petronas’ liquefied natural gas complex in Bintulu, Sarawak.

“We will continue to pursue future gas development projects from our other successful gas discoveries in Malaysia, which is part of SKE’s portfolio today,” SapuraKencana Petroleum president & group CEO Tan Sri Shahril Shamsuddin said in a statement.

SKE via SapuraKencana Energy Sarawak Inc is the operator of the SK310 PSC with a 30% participating interest and partners Petronas Carigali Sdn Bhd with 40% and Diamond Energy Sarawak Sdn Bhd, a subsidiary of Mitsubishi Corporation, with 30%.