SapuraOMV Upstream, Kuala Lumpur, put on stream its operated Bakong gas field, under the SK408 production sharing contract (PSC), after achieving stable production. Production started in June. Phase 1 of the SK408 development is now entirely on stream.
SK408 fields are part of discoveries made by the company in 2014. Phase 1 development aims to commercialize gas reserves from Gorek, Larak, and Bakong fields, to help meet the growing gas demand in Asia. Larak started production in December 2019, and Shell-operated Gorek started in May 2020. Under a long-term agreement with Petronas, SapuraOMV and SK408 partners will supply gas from these fields to the Petronas LNG complex in Bintulu, Sarawak.
The fields are SapuraOMV’s second major upstream gas development project in East Malaysia, following successful development and commencement of production from SK310 B15 gas field. With full ramp-up of the first phase of SK408, SapuraOMV’s production is scheduled to increase to more than 30,000 boe/d in 2020, which will more than double 2019’s production rate.
SapuraOMV, a partnership between Sapura Energy Bhd. and OMV Exploration & Production GmbH, a subsidiary of Austria’s OMV Aktiengesellschaft, holds a 40% interest in SK408 PSC with partners Sarawak Shell Bhd. (30%) and Petronas Carigali Sdn Bhd (30%).