Petronas begins gas production off Sabah coast

by AZALEA AZUAR / pic credit:

PETROLIAM Nasional Bhd (Petronas) has begun its first gas production off the coast of Sabah, which is from the Rotan and Buluh fields in Block H on Feb 6.

Highlighting Malaysia’s petroleum investment potential, the gas is produced from a water depth of more than 1,100 metres.

The project is deemed as the first deepwater gas field with a target production capacity of 270 million standard cubic feet per day, marking a significant milestone in the country’s upstream sector.

The gas is received by Petronas’ second Floating Liquefied Natural Gas (PFLNG Dua) facility for the LNG export market.

Block H’s production has joined the ranks of current production from three deepwater blocks offshore Malaysia.

Petronas senior VP of Malaysia petroleum management Mohamed Firouz Asnan said the gas production reflects a strong collaboration between Petronas and the investors.

“Both parties bring together expertise and technologies to monetise stranded deepwater gas fields through the evacuation of gas via PFLNG Dua,” he said in a press release.

He also mentioned that Petronas will become the first global energy company to own and operate two floating LNG facilities upon the expected commercial delivery of its first LNG cargo in the middle of March this year.

“In addition, the strong support from the Sabah government also plays a significant role in realising this achievement,” Mohamed Firouz added.

Block H is operated by PTT Exploration and Production Public Co Ltd’s (PTTEP) subsidiary PTTEP Sabah Oil Ltd.

It has also partnered Petronas’ subsidiaries PT Pertamina Malaysia Eksplorasi Produksi and Petronas Carigali Sdn Bhd.

Furthermore, there would be four additional deepwater blocks which are being offered in the upcoming Malaysia Bid Round 2021 scheduled on Feb 26.

In developing Malaysia as SouthEast Asia’s deepwater hub, Petronas welcomes further investment to unlock deepwater potential.