Petronas Carigali Sdn Bhd, the exploration and production arm of Petronas, has made two significant gas discoveries in the shallow water areas offshore the west coast of Sabah.
The first discovery was via the Zuhal East-1 well, which was located in the Samarang Asam Paya Block about 130km southwest of Kota Kinabalu. The well was spudded in water depth of 38 m and reached a total depth of 2,336 m to confirm the presence of significant gas-bearing reservoirs.
The current estimate of gas-initially-in-place is about 550 billion standard cubic feet (bscf).
Petronas, in a statement yesterday, said similar reservoirs in a nearby well about 5 km to the east of the Zuhal East discovery were tested to flow gas at a maximum rate of 21 million standard cubic feet per day (mmscfd). Petronas Carigali is the sole equity holder of the production sharing contract (PSC) of the Samarang Asam Paya Block.
The second discovery, at the Menggatal-1 well, is located in Block SB312, about 110 km northeast of Kota Kinabalu. The well was spudded in water depth of 204 m and reached a total depth of 2,100 m.
It was production-tested and flowed gas at a rate of 19 mmscfd through a 36/64-inch choke size with no recorded CO2 and H2S content. Gas-initially-in-place is currently estimated to be about 650 bscf.
Commenting on the gas discoveries, TA Securities Holdings Bhd research head Kaladher Govindan told StarBiz the discoveries would not immediately address the current shortage of gas as it would normally take four to five years for the supply to come on stream.
Furthermore, he added the new Petronas Gas Bhd's LNG regas plant in Malacca, which is expected to be commissioned next year, would help to an extent address the gas shortage supply.
Another analyst said the discoveries would be upon coming on stream be catered for the local market for gas in view of its shortage but the new regas plant would help “cushion out” the supply situation.
Block SB312 PSC is a joint-venture between Petronas Carigali with 60% equity and KUFPEC Malaysia (SB 312) Ltd, a subsidiary of Kuwait Foreign Petroleum Exploration Company, which holds the remaining interest. Petronas Carigali is the operator for both PSCs.
