Malaysia: PETRONAS, Total to Study K5 Field Development

A Malaysian oil and gas company PETRONAS has signed a Heads of Agreement  (HOA) with Total of France to jointly study the development and production potential of K5, a high carbon dioxide gas field offshore Sarawak.

Under the HOA, PETRONAS’ newly established upstream research unit Exploration and Production Technology Centre and Total will explore the possibility of developing the field in ways that are technically, commercially and  environmentally viable.

The scope of the study will also include the development of carbon dioxide management technologies in the areas of carbon capture, transportation and sequestration. The study is set to commence immediately and will take 15 months to  complete.

Discovered in 1970, K5 is a sour gas field with up to 70 per cent carbon dioxide content. It is located approximately 230 km from Bintulu in water depth of 80 metres. Successful development of — and eventual production from — such a field requires extensive study and research, and if the study finds it viable,  K5 will be the first gas field with more than 50 per cent carbon dioxide content to be developed in Malaysia.

As more and more discovered gas resource in Malaysia contains high carbon dioxide, it is important that PETRONAS develops the expertise and technological know-how to develop this resource in the safest, most responsible manner. The application of new technologies is part of PETRONAS’ continuous efforts to ensure the security of energy and gas supply to the nation.

The HOA was signed at the Kuala Lumpur Convention Centre,  yesterday. PETRONAS was represented by Encik Ramlan Abdul Malek, Vice President of Petroleum Management, while Total was represented by Mr. Vincent Dutel, General  Manager of Total E&P Malaysia.

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Source: Petroliam Nasional Berhad, March 28, 2012