First Gas Flows From SapuraOMV's SK408 Block

OE Staff January 13, 2020

Sapura OMV blocks in Malaysia / Image source; OMV

SapuraOMV, an E&P joint venture between Malaysia's Sapura and Austrian OMV, has started the first production from SK408 block, off Malaysia, bringing online the Larak gas field. The SK408 gas fields are part of discoveries made by SapuraOMV Upstream in a drilling campaign in 2014.

The fields are tied back into an existing processing facility and gas is transported through existing pipelines for onward gas processing at Petronas LNG complex in Bintulu.

SapuraOMV Chairman Shahril Shamsuddin said: "This achievement will strengthen our presence in the existing market, propelling us to become one of the most significant gas producers in the country and in the region."

The development of SK408 aims to commercialize gas reserves from the Gorek, Larak and Bakong fields, which will help meet the growing gas demand in Asia, the company said. SapuraOMV is the operator for the Larak and Bakong fields while Sarawak Shell Berhad is the operator for the Gorek field

SapuraOMV’s partners under SK408 PSC are Sarawak Shell Berhad (30%) and PETRONAS Carigali Sdn. Bhd (30%).

Johann Pleininger, Executive Board Member responsible for Upstream and Deputy Chairman of OMV: "This production start is a positive signal and demonstrates OMV’s commitment to the Asia-Pacific hub. It shows once more the strengthening of the gas focus in our production portfolio.”

The SK408 development is SapuraOMV’s second major upstream gas development project in East Malaysia, following the successful development and start of production from the SK310 B15 gas field. Following the full ramp-up of the first phase of SK408 SapuraOMV’s production is expected to increase to more than 30 kboe/d, with the majority being gas.

The SapuraOMV JV was formed in early 2019 to focus on Malaysia as the main hub and to expand the business in Asia Pacific and Mexico. OMV paid $540 million for its 50% interest in SapuraOMV Upstream.