Sapura Energy, partners to develop SK408 gas fields

PETALING JAYA: Sapura Energy Bhd, along with its partners Petronas Carigali Sdn Bhd and Sarawak Shell Bhd, will develop the Gorek, Larak and Bakong gas fields in the SK408 production sharing contract (PSC).
Sapura said in a stock exchange filing today that the trio have taken the final investment decision to develop the fields offshore Sarawak as the first phase of the PSC.
“The FID follows the field development plan approval from Petronas and, concurrently, the signing of the key terms to the gas sales agreement for phase 1 of the SK408 gas field development,” it noted.
Sapura Energy’s share price, which has taken a beating in recent weeks, was up 11 sen or almost 21% on the news, closing at 64.5 sen with some 607.9 million shares changing hands, making it the most actively traded stock today.
The gas fields under the SK408 block are part of the discoveries made by Sapura’s wholly owned subsidiary Sapura Exploration and Production (Sarawak) Inc (Sapura E&P) in its 2014 drilling campaign and will be developed as three separate wellhead platforms tied back to the existing processing facility and to the Malaysia Liquefied Natural Gas (MLNG) complex.
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.
The SK408 gas fields will be Sapura E&P’s second major upstream gas development project in East Malaysia, after the successful development and commencement of production from the SK310 B15 gas field.
“The final investment decision represents a critical milestone as we further progress towards unlocking the value of our gas fields thus, providing clear visibility of our long-term gas monetisation plans.
“With the recent extensive addition to our exploration acreage in Mexico and New Zealand, the group has been able to geographically diversify our E&P segment and put in place a well-balanced portfolio across exploration, development and production phases,” Sapura president and CEO Tan Sri Shahril Shamsuddin said in a statement today.