KUALA LUMPUR: Petroliam Nasional Bhd (Petronas) has announced a new oil and gas discovery in the Sirung-1 wildcat exploration well located in the shallow waters of the Balingian province, 237km off the coast of Miri, Sarawak.
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It said the Sirung-1 exploration well, codenamed Block SK405B Production Sharing Contract (PSC), was successfully drilled to a total depth of 2,538m in February.
In a statement, Petronas said the discovery of the significant oil and gas column – exceeding 100m within the Oligocene to Middle Miocene sandstone reservoirs – further validates the potential of the Balingian province, with remaining prospects yet to be explored.
“The Sirung-1 discovery further proves the presence of oil, especially in the under-explored deeper play within the Balingian province. This came after similar success in an infill well at D18 Field.
“We are well-positioned to pursue a similar play in the other two neighbouring blocks in the same province, namely Blocks SK411 and SK306.
“As such, developing this block and other surrounding areas remains an integral part of Petronas and our partners’ long-term growth plans,” its vice-president of exploration (Upstream), Emeliana Rice-Oxley, said.
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PTTEP Sarawak Oil Ltd holds 59.5% as the operator, MOECO Oil (Sarawak) Sdn Bhd holds 25.5% and Petronas Carigali Sdn Bhd, a subsidiary of Petronas, holds the remaining 15% participating interest in Block SK405B.
The production sharing contract was signed in November 2017 following the Malaysia Bid Round (MBR) 2015.
“We are very encouraged by the continued success with our partners on the consecutive discoveries this year in Malaysia and remain optimistic in our exploration activities for 2021,” Rice-Oxley said.
For MBR 2021, she said, Petronas is offering 13 new opportunities in the prolific basins of Malaysia which are also accompanied by enhanced fiscal and non-fiscal terms.
This initiative is part of Petronas’ continuous efforts to grow with its partners in Malaysia.-BERNAMA