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September 21, 2022

Petronas discovers new gas in Block SK 320 offshore Malaysia

The Cengkih-1 well encountered a gas column in the Miocene Cycle IV/V pinnacle carbonate reservoirs.

Petronas and Mubadala Energy have made a new gas discovery in the Central Luconia Province, offshore Malaysia, following the drilling of the Cengkih-1 exploration well in Block SK 320.

The Cengkih-1 well is located nearly 220km off the Bintulu coast in Sarawak.

Drilled to a total depth of 1,680m, the exploration well has intersected a gas column with a length of over 110m. The gas column was encountered in the Miocene Cycle IV/V pinnacle carbonate reservoirs.

Mubadala Energy CEO Mansoor Mohamed Al Hamed said: “This discovery further cements our position in Malaysia as a reliable and trusted operator with deep technical capabilities.

“Gas demand in Southeast Asia continues to grow and we look forward to helping meet those energy needs, in line with our strategy to play an active role in the energy transition.”

Mubadala Energy operates Block SK 320 with a 55% stake while Petronas and Sarawak Shell own 25% and 20% stakes, respectively, in the production sharing contract (PSC).

It is near the Pegaga gas field, which is also located within Block SK320. Mubadala Energy and its partners began production from the Pegaga field in March 2022.

Petronas Malaysia petroleum management senior vice-president Mohamed Firouz Asnan said: “The discovery confirms the large potential of this proven carbonate play type in Central Luconia.

“The monetisation of this discovery can be expedited with a lower cost, given the proximity to the many existing facilities, including that of Pegaga, which started production in March this year.”

The Pegaga field has been developed with an integrated central processing platform, which can handle a gas throughput of 550 million standard cubic feet of gas per day, alongside condensate.

A new underwater pipeline transports gas from the platform into an existing offshore gas network and subsequently to the onshore Petronas LNG Complex.

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