September 3, 2020
Malaysia’s SapuraOMV Upstream on Thursday announced stable production from its Bakong gas field project under the SK408 Production Sharing Contract (PSC), offshore Malaysia.
“The production phase started in June 2020. This follows the successful production from SapuraOMV‘s Larak gas field which started in December 2019 and the start-up of the Shell-operated Gorek field in May 2020. With this first production from the Bakong field, Phase 1 of the SK408 development is now entirely on stream,” SapuraOMV, a JV between Sapura and OMV, said.
The SK408 gas fields are part of the discoveries made by SapuraOMV Upstream in a drilling campaign in 2014.
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.
The SK408 gas fields are SapuraOMV’s second major upstream gas development project in East Malaysia, following the development and start 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,” Sapura OMV said.
SapuraOMV’s partners under SK408 PSC are Sarawak Shell Berhad (30%) and PETRONAS Carigali Sdn. Bhd (30%).