SapuraOMV Upstream announces stable production from its operated Bakong gas field project under the SK408 Production Sharing Contract (PSC), which was delivered within budget. The production phase started in June 2020. This follows the successful production from SapuraOMV‘s Larak gas field which started in December 2019 and the start-up of the Shell-operated Gorek field in May 2020. With this first production from Bakong field, Phase 1 of the SK408 development is now entirely on stream.
The SK408 gas fields are part of the discoveries made by SapuraOMV Upstream in a drilling campaign in 2014. The Phase 1 development of SK408 Production Sharing Contract (PSC) aims to commercialize the gas reserves from Gorek, Larak and Bakong fields, which will help meet the growing gas demand in Asia. Under a long-term agreement with PETRONAS, SapuraOMV and its SK408 partners, Sarawak Shell Berhad and PETRONAS Carigali Sdn. Bhd. will supply gas from these fields to the PETRONAS LNG complex in Bintulu, Sarawak.
“With this achievement we continue to demonstrate to our stakeholders our commitment to safety and project delivery, despite the many challenges posed by the COVID-19 pandemic,” said Tan Sri Dato’ Seri Shahril Shamsudin, Chairman of SapuraOMV Upstream. He further highlighted, “This achievement further strengthens our presence in the existing market, propelling us to become one of the most significant gas producer in the country and in the region, which would further cement our position as a trusted and reliable oil and gas company.”
Johann Pleininger, Executive Board Member responsible for Upstream and Deputy Chairman of OMV: “With the successful start-up phase, we are setting a further step in strengthening the gas focus in our production portfolio and it is a strong signal in our OMV core region Asia-Pacific.”
The SK408 gas fields are SapuraOMV’s second major upstream gas development project in East Malaysia, following the successful development and commencement of production from the SK310 B15 gas field. With the full ramp-up of the first phase of SK408, SapuraOMV’s production is scheduled to increase to more than 30 kboe/d in 2020, which will more than double the production rate compared to 2019.
SapuraOMV’s partners under SK408 PSC are Sarawak Shell Berhad (30%) and PETRONAS Carigali Sdn. Bhd (30%).