Tuesday, 23 September 2014

SapuraKencana unit discovers gas offshore Sarawak

SapuraKencana Petroleum Bhd’s unit, SapuraKencana Energy (SKE), has discovered gas at Bakong-1, the fifth and final well in its 2014 drilling campaign within the SK408 production-sharing contract area offshore Sarawak.

The newest discovery is the biggest in terms of gross gas column, which is in excess of 600 m in the primary target reservoir located within the Late Miocene Carbonate reservoirs, bringing the total gas discovered to more than three trillion standard cu ft of gas in-place.

The other four wells are Teja-1 (gross gas column of 219 m), Gorek-1 (gross gas column of 235 m), Legundi-1 (gross gas column of 139 m) and Larak-1 (gross gas column of 333 m).

SapuraKencana Petroleum president and group chief executive officer Tan Sri Shahril Shamsuddin said in a statement: “This last well ranks as one of the larger discoveries in Malaysia this year and has doubled the resources found in the block to-date.”

He added that the drilling campaign for SK408 this year had been well-executed and completed safely by the SKE team, while also having yielded exceptional results.

With the gas discovery at Bakong-1, the oil and gas heavyweight has completed the five well-drilling programmes slated for this year as part of the SK408 work campaign.

“In line with the SK408 partnership philosophy of fast-track, low-cost development, all five discovery wells have been suspended with the intention of completing as gas production wells in the future,” the company said.

Going forward, the company will launch another five well-exploration campaigns next year that targets additional gas prospects with significant potential in the SK408 Block.

SKE, via SapuraKencana Energy Sarawak Inc, is the operator with a 40% working interest with partners Petronas Carigali Sdn Bhd (30%) and Sarawak Shell Bhd (30%).

The SK408 block is located in shallow waters, about 120km offshore Sarawak, covering an area of approximately 4,480 sq km in the prolific Central Luconia Gas Province.