SKPETRO (5218) - SapuraKencana to sell gas to Petronas

KUALA LUMPUR (June 27): SapuraKencana Petroleum Bhd has inked an agreement to sell gas produced from its SK310 B15 gas field to Petroliam Nasional Bhd (Petronas).

In a filing with Bursa Malaysia today, the integrated oil and gas services provider said its unit SapuraKencana Energy (SKE) sealed the deal with Petronas last Thursday (June 23).

The gas field, which was discovered in December 2010, is located within the SK310 Production Sharing Contract (PSC) area, offshore East Malaysia.

SapuraKencana, via SKE, holds a 30% stake in the PSC. The other partners are Petronas Carigali Sdn Bhd, holding 40% interest, and Mitsubishi Corporation's subsidiary Diamond Energy Sarawak Sdn Bhd (30%).

According to the group, the PSC contractors will also be deemed as joint sellers.

Recall that SapuraKencana obtained the Field Development Plan approval from Petronas for the development of the gas field in November last year.

The development will comprise a central processing platform with a 35km gas evacuation pipeline to be tied into the existing infrastructure. The B15 field is expected to produce 100 million standard cubic feet per day of hydrocarbon gas for Petronas' liquefied natural gas complex in Bintulu, Sarawak.

Shares in SapuraKencana finished the first trading session at RM1.32, down three sen or 2.22%, with 13.27 million shares traded. The current price values it at RM7.85 billion.

SKPETRO (5218) - SapuraKencana to sell gas to Petronas