KUALA LUMPUR: SapuraOMV Upstream announces stable production from its operated Bakong gas field project under the SK408 Production Sharing Contract (PSC), which was delivered within budget.
In a statement today, SapuraOMV said the production phase started in June, following the successful production from its Larak gas field which started in December 2019 and the start-up of the Shell-operated Gorek field in May this year.
With the first production from Bakong field, Phase 1 of the SK408 development is now entirely on stream.
The SK408 gas fields are part of the discoveries made by SapuraOMV Upstream in a drilling campaign in 2014.
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 Petroliam Nasional Bhd (Petronas), SapuraOMV Upstream and its SK408 partners will supply gas from these fields to the Petronas LNG complex in Bintulu, Sarawak.
"With this achievement, we continue to demonstrate our commitment to our stakeholders on safety and project delivery, despite the many challenges posed by the Covid-19 pandemic," said SapuraOMV Upstream chairman Tan Sri Shahril Shamsudin.
"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," he added.
OMV deputy chairman and executive board member responsible for Upstream Johann Pleininger said the group was setting a further step in strengthening the gas focus in its production portfolio.
The SK408 gas fields are SapuraOMV's second major upstream gas development project in East Malaysia, following the development and commencement 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 30,000 barrels 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 per cent) and Petronas Carigali Sdn Bhd (30 per cent).