PETRONAS Announces New Gas Discoveries in Malaysia, Indonesia and Australia

PETRONAS Announces New Gas Discoveries in Malaysia, Indonesia and Australia

PETRONAS announces new gas discoveries in three of its upstream ventures in Malaysia, Indonesia and Australia.

The first discovery is via the Pegaga-1 well in Block SK320, offshore Sarawak, which is operated by Mubadala Petroleum through a Malaysian affiliate. PETRONAS Carigali Sdn Bhd, a subsidiary of PETRONAS, has a 25 per cent interest in the block.

The Pegaga-1 well is located about 250km northwest of Bintulu, in a water depth of 108 metres. It was drilled to a total depth of 2,029 metres and encountered 247 metres of gas column.

The well flowed gas to the surface and pressure data indicates the possibility of a substantial gas column still not penetrated by the well. The operator plans to conduct further drilling to determine the volumes of the discovery and the gas quality.

Pegaga-1 is the second successful gas well for the joint venture partners in Block SK320 after the M5-2 well drilled in 2012.

In Indonesia PetroChina, which is the operator of and PETRONAS’ partner in the onshore Jabung Block in Sumatra, has made a gas discovery through the NEB Base-1 well. This discovery is significant as it confirms the presence of hydrocarbons in a new exploration play consisting of fractured granite in the block.

PetroChina has drilled the NEB Base-1 well to a depth of 2,521 metres and intersected more than 976 metres of granitic basement of Pre-Tertiary age. The well has been temporarily suspended and planning for testing operations is in progress, including acidisation of the fractures to enhance hydrocarbon flow rates.

PETRONAS holds 42.85 per cent equity in the Jabung Block. Overall, PETRONAS is present in seven blocks in Indonesia, where it operates three of the ventures. SKK Migas, the government authority managing the activities of Production Sharing contractors in Indonesia, has been supportive of the joint venture’s exploration efforts in the block.

Meanwhile in Australia, the Evans Shoal North-1 appraisal well in the Evans Shoal gas field in the Timor Sea has been successfully drilled to the target depth of 3,955 metres. The field is located in the NT/P 48 exploration permit in the North Bonaparte Basin, which is about 300km northwest of Darwin.

A production test of the well, which is located in 111m water depth, flowed gas at a maximum facility constrained rate of 30 million standard cubic ft per day. The partners in the NT/P48 joint venture are Shell (operator; 32.5%), Eni (32.5%), PETRONAS (25%) and Osaka Gas (10%). The well is operated by Eni on behalf of the joint venture.

For Malaysia, the discovery in Block SK320 proves that there is still hydrocarbon potential in the Sarawak Basin. PETRONAS, together with its Production Sharing Contractors, is actively exploring in the basin through exploration drillings, both in the shallow and deep water areas, as well as acquiring new seismic, electromagnetic and gravity data to unlock the undiscovered potential of the areas.

Several oil and gas multinationals have been successful in their recent exploration drilling in Sarawak with several notable discoveries such as NC3/NC8, B14, Tukau Timur Deep, Kuang North and Kasawari. These exploration efforts have also opened up several new hydrocarbon play-types in the basin.

In Sumatra, the discovery of gas in the fractured granitic basement reservoir has opened up the hydrocarbon potential of the Pre-Tertiary basement play within the Jabung Block and the surrounding areas in Indonesia’s South Sumatra Basin.

Press Release, October 31, 2013