SapuraOMV announces its first production from its operated Bakong gas field under SK408 Production Sharing Contract (PSC).
Bakong field under SK408 PSC is the third field under sequence of SK408 Larak, Gorek and Bakong field development projects.
Earlier in January 2020, SapuraOMV announced that it achieved first gas for Larak field and in July 2020, Shell announced that its operated Gorek field delivered first gas making its the fastest Shell Malaysia Upstream operated field brought onstream from the point of discovery.
With this production of Bakong field, phase 1 of SK408 field 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.
Tan Sri Dato’ Seri Shahril Shamsudin, Chairman of SapuraOMV Upstream commented “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,” 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.”
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%).
About SapuraOMV Upstream
SapuraOMV Upstream, headquartered in Kuala Lumpur, is a strategic partnership between Sapura Energy Berhad and OMV Exploration & Production GmbH, a subsidiary of Austria’s OMV Aktiengesellschaft.
