KUALA LUMPUR (Sept 3): Sapura Energy Bhd’s SapuraOMV Upstream today announced its Bakong gas field project under the SK408 Production Sharing Contract (PSC) is now in stable production.
SapuraOMV is 50% held by Sapura Energy, with Austria’s OMV Aktiengesellschaft holding the other 50%.
The production phase started in June 2020, following the successful production from SapuraOMV's Larak gas field in December 2019, and the start-up of the Shell-operated Gorek field in May 2020. The SK408 gas fields are part of the discoveries made by SapuraOMV Upstream in a drilling campaign in 2014.
"With this first production from Bakong field, Phase 1 of the SK408 development is now entirely on stream," said SapuraOMV in a statement.
"The Phase 1 development of SK408 PSC aims to commercialise the gas reserves from Larak, Gorek and Bakong fields. As per the upstream gas sales agreement with Petronas, SapuraOMV Upstream and its SK408 partners will supply gas from these fields to the Petronas LNG Complex in Bintulu, Sarawak," it added.
“This achievement further strengthens our presence in the existing market, propelling us to become one of the most significant gas producers in the country and in the region, which would further cement our position as a trusted and reliable oil and gas company,” said SapuraOMV’s chairman Tan Sri Shahril Shamsudin.
Meanwhile, Johann Pleininger, the Executive Board Member responsible for Upstream and Deputy Chairman of OMV, said: “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, the company said.
With the full ramp-up of the first phase of SK408, SapuraOMV’s production is scheduled to increase to more than 30 kboe/d (kilobarrel of oil equivalent per day) in 2020, which will be more than double the production rate compared to 2019.
SapuraOMV’s partners under SK408 PSC are Sarawak Shell Bhd (30%) and PETRONAS Carigali Sdn Bhd (30%).
Shares of Sapura Energy settled half a sen or 3.85% lower at 12.5 sen today, giving it a market capitalisation of RM1.997 billion.