Petronas Discovers Substantial Oil Reserves Offshore Sabah, Malaysia
- Business & Finance
Malaysia’s national oil corporation PETRONAS Carigali Sdn Bhd , has encountered substantial oil reserves within Block 2G-2j, offshore Sabah. The finding was made at the Wakid-1 well , about 100km northwest of the capital of Sabah state in East Malaysia, Kota Kinabalu.
Malaysian oil giant sad that the well was spudded on 30 May 2011 and was completed on 4 July 2011. It reached a total vertical depth of 3,330m and confirmed the presence of significant oil, as well as some gas-bearing, reservoirs.
Three production tests were conducted in three different reservoirs which flowed oil at a combined maximum rate of 8,200 barrels per day. Current preliminary estimation of the hydrocarbon-in-place from this discovery is 227 million barrels of oil equivalent (mmboe), with expected upside potential.
PETRONAS Carigali plans to further appraise the discovery in the near future. Wakid-1 is the second well drilled in Block 2G-2J since the award of its Production Sharing Contract (PSC) in October 2010. The block’s first well, Tambuku-1, was drilled early this year, but produced a only minor gas discovery.
PETRONAS Carigali is the sole equity holder of the PSC for the block.
Petronas has recently signed an agreement with Shell for two 30-year production sharing contracts (PSCs) for enhanced oil recovery (EOR) projects offshore Sarawak and Sabah. The main objective of the agreement is to extend the life and increase the recovery factor of the Baram Delta (BDO) and North Sabah fields.
Offshore Energy Today Staff , November 15, 2011; Image: Petronas