Projects

SK408 Gas Fields Development Project, Offshore Sarawak

SK408 gas fields development project is located within the SK408 Production Sharing Contract (PSC) area, approximately 120km offshore Sarawak in Central Luconia Gas Province, Malaysia.

Project Type

Gas fields development

Location

Offshore Sarawak, Malaysia

Discovered

2014

Ownership

SapuraOMV Upstream (40%), Sarawak Shell Berhad (30%) and Petronas Carigali (30%).

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SK408 gas fields development project is located within the SK408 Production Sharing Contract (PSC) area, approximately 120km offshore Sarawak in Central Luconia Gas Province, Malaysia.

The project includes five natural gas and condensate fields, namely Gorek, Larak, Bakong, Teja, and Legundi.

The gas fields development project is being developed jointly by SapuraOMV Upstream (40%), Sarawak Shell Berhad (30%) and Petronas Carigali (30%). The phase one development of the SK408 project includes the commercialisation of the gas reserves from the Gorek, Bakong, and Larak fields.

The final investment decision (FID) on the development of the three fields under the first phase was made in April 2018.

SapuraOMV and its partners signed a full-term gas sales agreement with Petroliam Nasional Berhad (Petronas) to supply the gas produced from three fields to the Petronas LNG complex in Bintulu, Sarawak, in September 2019.

The SapuraOMV-operated Larak gas field produced first gas in December 2019 while the Shell-operated Gorek field came onstream in May 2020.

The production of first gas from the SapuraOMV-operated Bakong field was achieved in September 2020, completing the phase one development of the project. The fields will support the rising demand for gas in Asia.

The first gas from phase two of the development project is expected in 2023. The Block SK408 is estimated to expire in 2039.

SK408 gas fields discovery details

The Block SK408 spans approximately 4,480km² offshore Sarawak. The non-associated natural gas fields within the SK408 PSC area were discovered by a drilling campaign in 2014.

The discovery well Teja-1 encountered a gross gas column of 219m. Gorek-1 well has 235m of gross gas column, Legundi-1 has 139m of gross gas column, Larak-1 has 333m of gross gas column, while Bakong-1 well encountered a gross gas column of more than 600m within the Late Miocene Carbonates reservoir.

The five discovery wells are estimated to contain more than three trillion standard cubic feet (tscf) of gas.

Other exploration activities in Block SK408

Sapura’s 2015 three-well drilling campaign in Block SK408 made a significant gas discovery.

The Jerun-1 well was drilled approximately 5km north of the Bakong gas field and encountered approximately 800m of gross gas column. Jeremin-1 well, located 15km west of the F9 gas field, encountered a gross gas column of 104m. The Putat-1 well was drilled 20km north of the Cili Padi gas field and was declared a dry hole. All the wells were plugged and abandoned safely.

Additional discoveries in the western side of the Block SK408, particularly Well B and Well J, encountered a significant gas column in 2015.

In a 2017 drilling campaign, Pepulut-1 exploration well encountered high-quality reservoir in Block SK408. A total of nine successful gas discoveries were made in Block SK408 between 2014 and 2017.

SK408 gas fields development details

The SK408 gas fields development project has three gas fields in production, developed as three separate wellhead platforms tied back to the Shell’s existing F6 processing facility.

The gas from the processing facility is further piped to the Petronas Bintulu LNG complex via existing pipelines for further processing.

The production from the three fields is expected to rise to over 30,000 barrels of oil equivalent (boe) by the end of 2020.

Contractors involved

McDermott received two contracts for the development of the fields under the Pan Malaysia field development in February 2019. The contracts were awarded by Sarawak Shell Berhad, and Sapura Exploration and Production.

The company transported and installed jackets, pipelines, and topsides for the Gorek gas field under the contract with Sarawak Shell Berhad.

The second contract included the transportation and installation of the jackets, topsides and pipelines for the Larak and Bakong gas fields. McDermott also fabricated risers and spools for the field development project.

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