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SapuraKencana branches into upstream with approval for first Sarawak project

SapuraKencana branches into upstream with approval for first Sarawak project
Major Malaysian offshore player SapuraKencana Petroleum unit SapuraKencana Energy (SKE) has secured field development plan (FDP) approval from Petronas for a gas field development project offshore Sarawak, the company said in a stock market announcement.

SapuraKencana said with this approval, SKE would start the development phase for the SK310 B15 development project, with the first gas delivery targeted for the fourth quarter of 2017.

The B15 field, discovered in December 2010, is located within the SK310 production sharing contract (PSC) area, offshore East Malaysia.

The company said the development would comprise a central processing platform with a 35km gas evacuation pipeline to be tied into existing infrastructure.

The B15 field is expected to produce 100 MMscfd (million standard cu ft per day) of hydrocarbon gas for Petronas’ liquefied natural gas complex in Bintulu, Sarawak.

“The FDP approval from Petronas marks SKE’s first development in the upstream gas project in Malaysia. We will continue to pursue future gas development projects from our other successful gas discoveries in Malaysia which is part of SKE’s portfolio today,” said SapuraKencana Petroleum president and group ceo Shahril Shamsuddin.

SKE, via SapuraKencana Energy Sarawak, is the operator of the SK310 PSC with a 30% participating interest. Its project partners are Petronas Carigali (40%) and Mitsubishi Corp unit Diamond Energy Sarawak with a 30% stake.