SapuraOMV Upstream begins production from SK408 gas fields in Malaysia

SapuraOMV Upstream has started production from the Larak gas field as part of the SK408 gas fields in Malaysian waters off the coast of Sarawak.

The Larak gas field development was executed within budget, said SapuraOMV Upstream, which is a partnership between Malaysia‘s Sapura Energy and OMV Exploration & Production, a subsidiary of Austrian oil and gas company OMV.

The first phase of the SK408 gas project, under the SK408 Production Sharing Contract (PSC), involves the development of reserves from the Gorek, Larak and Bakong fields in order to address the increasing demand for gas in Asia. The SK408 PSC has two other gas fields – Teja and Legundi, which are likely to be developed in the future.

The offshore Malaysian gas fields are part of discoveries made by SapuraOMV Upstream during a drilling program in 2014. The SK408 gas fields are tied back into an existing processing facility with gas transported via existing pipelines for onward gas processing at Petronas MLNG complex located onshore in Bintulu.

SapuraOMV Upstream and partners begins production from SK408 gas fields in Malaysia. Image courtesy of OpenClipart-Vectors from Pixabay.

Tan Sri Dato’ Seri Shahril Shamsuddin (Tan Sri Shahril) – SapuraOMV Chairman, commenting on the start of production from the Larak gas field said: “This achievement will strengthen our presence in the existing market, propelling us to become one of the most significant gas producer in the country and in the region.

“This will further cement our position as a trusted and reliable oil and gas company.”

SapuraOMV (40%) is partnered in the SK408 gas project by Sarawak Shell (30%) and Petronas Carigali (30%).

The development of the SK408 gas fields marks the second major upstream gas project in East Malaysia for SapuraOMV after the development and start of production from the SK310 B15 gas field.

According to OMV, after the full ramp-up of the first phase of the SK408 gas project, made up of the Gorek, Larak, and Bakong fields, SapuraOMV’s production is likely to move up to 30 kboe/d plus with the majority of that being gas.

Johann Pleininger – Executive Board Member responsible for Upstream and Deputy Chairman of OMV, commenting on the start-up of the SK408 gas fields, said: “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.”