SapuraKencana gets nod for first upstream gas development project in M'sia

KUALA LUMPUR: SapuraKencana Petroleum Bhd’s unit SapuraKencana Energy Inc (SKE) has secured field development plan (FDP) approval from Petroliam Nasional Bhd (Petronas) for a gas field development project offshore Sarawak.

SapuraKencana said in a statement that with this approval, SKE would start the development phase for the SK310 B15 development project, with the first gas delivery targeted for the fourth quarter of 2017.

The B15 field, discovered in December 2010, is located within the SK310 production sharing contract (PSC) area, offshore East Malaysia.

The company said the development would comprise a central processing platform with a 35km gas evacuation pipeline to be tied into existing infrastructure.

The B15 field is expected to produce 100 MMscfd (million standard cu ft per day) of hydrocarbon gas for the Petronas’ liquefied natural gas complex in Bintulu, Sarawak.

“The FDP approval from Petronas marks SKE’s first development in the upstream gas project in Malaysia. We will continue to pursue future gas development projects from our other successful gas discoveries in Malaysia which is part of SKE’s portfolio today,” said SapuraKencana Petroleum president and group chief executive officer Tan Sri Shahril Shamsuddin.

SKE, via SapuraKencana Energy Sarawak Inc, is the operator of the SK310 PSC with a 30% participating interest. It partners with Petronas Carigali Sdn Bhd (40%) and Diamond Energy Sarawak Sdn Bhd, a subsidiary of Mitsubishi Corp (30%).

SapuraKencana shares gained 10 sen to close at RM2.26 on Wednesday.