Sapura Energy gets nod for SK408

By SIOW NAN YEE / Pic By ISMAIL CHE RUS

Sapura Energy Bhd and its concession partners, Petronas Carigali Sdn Bhd and Sarawak Shell Bhd, have made a final investment decision (FID) to develop the Gorek, Larak and Bakong fields in the SK408 eld offshore Sarawak.

The FID follows the field development plan approval from Petroliam Nasional Bhd (Petronas) and concurrently, the signing of the key terms to the phase one in the SK408 production sharing contract.

Sapura Energy president and CEO Tan Sri Shahril Shamsuddin (picture) said the development of the SK408 gas field will strengthen the company’s position as a supplier of natural gas to the Petronas liquefied natural gas (LNG) complex in Bintulu, Sarawak.

“The FID represents our long-term gas monetisation plans and with the recent exploration acreage in Mexico and New Zealand, we have geographically diversified our exploration and production (E&P) segment,” he said in a release yesterday.

The news saw Sapura Energy’s share price rallying 20.56%, or 11 sen, to 64.5 sen as the counter became the most actively traded for the day, with 607.9 million shares exchanging hands and accounting for 13% of total market volume yesterday.

The oil and gas services company noted that the fields will be developed as three separate wellhead platforms, tied back to the existing processing facility and to the onshore LNG complex.

The SK408 gas field development project is part of the discoveries made by Sapura E&P in its 2014 drilling campaign.

It will be the group’s second major upstream gas development project in East Malaysia after the SK310 B15 gas field.

Shell Malaysia chairman Datuk Iain Lo said the development move reaffirms the company’s commitment to developing the Sarawak basin to secure a clean energy source.

“With this, there have been 12 gas discoveries in Sarawak by Shell and its equity partners over the past five years,” Lo said.

Sapura E&P is the development and production operator of the Larak and Bakong fields, while Sarawak Shell is the development and production operator of the Gorek field.