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Malaysia Discovers Oilfield for First Time in 24 Years

Source: www.gulfoilandgas.com 1/18/2013, Location: Asia

PETRONAS wishes to announce the discovery of oil and gas via the Adong Kecil West-1 well in Block SK333, onshore Sarawak.

The Adong Kecil West-1 well, located about 20 km northeast of Miri town, was drilled by JX Nippon Oil & Gas Exploration (Onshore Sarawak) Limited, the operator for Block SK333, together with its joint venture partner PETRONAS Carigali Sdn Bhd.

The well was drilled to a depth of 3,170 meters and encountered a total of approximately 349 metres of net hydrocarbon thickness.

Two drill-stem tests achieved flow rates of about 440 barrels of crude oil per day and 11.5 million standard cubic feet of gas per day. Technical assessments are currently being undertaken by the operator to determine the resource volume of the field.

The Adong Kecil West-1 is the first onshore oil and gas discovery made in Malaysia, after a lapse of 24 years. The last onshore discovery was Asam Paya Field in 1989, also in Sarawak.

Based on the drilling results, there are also indications that the deeper sections in the onshore area may hold additional upside potential for hydrocarbon accumulation. However, with the higher borehole pressures expected, drilling operations will be more challenging for the deeper reservoirs and rigs with higher specifications will be required to test such intervals.

To-date, three discoveries have been found onshore Sarawak, namely the Miri, Asam Paya and now Adong Kecil West fields. These discoveries prove that onshore Sarawak has the potential for more oil and gas accumulations where the Miri Field, Malaysiaís first oil field, was discovered way back in 1910.

Further onshore exploration activities will be undertaken by the joint venture to support PETRONASí effort to rejuvenate the nationís onshore oil and gas exploration.

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