Petronas makes gas discovery in Sarawak, oil in East Java

by LYDIA NATHAN / pic credit:

PETROLIAM Nasional Bhd (Petronas) has announced a gas discovery from Dokong-1 wildcat exploration well in Block SK417 Production Sharing Contract (PSC), located in the shallow waters of Baram Province, approximately 90km off the coast of Sarawak, offshore Malaysia.

The state oil firm said PTTEP HK Offshore Ltd is the operator for Block SK417 PSC with 80% participating interest, while Petronas subsidiary, Petronas Carigali Sdn Bhd, owns the remaining 20%.

It said the PSC was signed in March 2018 as a result from the Malaysia Bid Round 2017.

The Dokong-1 wildcat exploration well was successfully drilled to a total depth of 3,810m in mid-January 2021, while the discovery of a gas column measuring more than 80m in the Middle to Late Miocene Cycle VI-VII reservoirs had validated the potential of the remaining prospects in Baram.

Petronas senior VP of Malaysia petroleum management Mohamed Firouz Asnan said the Dokong-1 exploration is among the most recent successes in the country’s exploration activities.

“Monetisation of sweet gas discovery in Baram can be supported through existing infrastructure and will contribute towards Petronas’ aspiration in delivering reliable, stable and cleaner energy supply to domestic and global markets,” he said.

According to Mohamed Firouz, the finding of the contaminant-free gas has revived Baram’s shallow clastics play and proves the presence of more sweet gas opportunities in the area.

“The discovery reinvigorates the entire exploration restoration of the Baram Province, strengthening the role of Baram gas supply network as part of the larger Sarawak gas system. Petronas, together with the PSC parties, are currently undertaking a further evaluation to determine the full extent of the discovery.”

“Petronas will be offering four shallow-water blocks in Sarawak as part of the upcoming Malaysia Bid Round 2021, which will take place on Feb 26, 2021,” he added.

Separately, Petronas also said its subsidiary, PC North Madura II Ltd, has made an oil discovery at the Hidayah-1 exploration well, located within the North Madura II PSC, offshore East Java, Indonesia. PC North Madura II is the operator with 100% participating interest in the North Madura II PSC.

The Hidayah-1 exploration well was spudded on Jan 7, 2021, and safely drilled to a depth of 2,739m. The well encountered an oil-bearing carbonate build-up with good reservoir qualities in the Ngimbang carbonate formation and tested at approximately 2,100 barrels of oil per day with good crude quality. The Hidayah-1 exploration well results will be further assessed to ascertain its potential.

“The discovery at the Hidayah-1 exploration well marks an important milestone for the North Madura II PSC as it has proven oil potential of carbonate build-up in the area. This is an encouraging development and is a testament to the vast exploration potential in Indonesia,” Petronas VP of exploration, upstream Emeliana Rice-Oxley said.

“We look forward to strengthening our relationship and collaboration with the government towards delivering clean, safe and reliable energy supply to the Republic of Indonesia.”

Meanwhile, PC North Madura II president Mohd Nazlee Rasol said the oil discovery is proof of Petronas’ commitment to continue growing their upstream business in the country.

“We are thankful for the strong support given by SKK Migas and the local government of Kabupaten Sampang in making the drilling of Hidayah-1 exploration well a success,” he said in the same statement.

Read our previous report here

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