PTTEP strikes ‘multi-tcf’ gas discovery offshore Malaysia
Thai oil and gas company PTTEP has made a “multi-TCF gas discovery” in the shallow waters offshore Sarawak, Malaysia.
PTTEP’s Malaysian subsidiary PTTEP HKO struck gas at the Lang Lebah-1RDR2, the first exploration well in Sarawak SK410B Project.
The well, spud in March 2019, targeted non-associated gas in the primary target of the Middle Miocene cycle IV/V carbonate reservoir and undertaken to a total depth of 3,810 meters.
The well encountered 252 meters of net gas pay, indicating multi-TCF gas discovery. The well was tested in carbonate main target reservoir with a completion-constrained (2-7/8” tubing) rate of 41.3 MMSCFD and 246 barrel of condensate per day (BCPD) through 40/64-inch choke size.
“The drilling result of the Lang Lebah-1RDR2 is historically PTTEP’s largest discovery. This affirms PTTEP’s strategy in organically growing reserves from exploration activities. The discovery will require further drilling to confirm upside potential,” PTTEP said.
The Sarawak SK410B Project is located in the shallow waters, approximately 90 kilometers offshore Sarawak, with the acreages of approximately 1,870 square kilometers. The consortium consists of PTTEP HKO (the Operator), KUFPEC and PETRONAS Carigali Sdn. Bhd. with participating interests of 42.5%, 42.5% and 15% respectively.
Offshore Malaysia offers golden opportunity for upstream players
The news of the discovery comes just days after energy intelligence consultancy Wood Mackenzie issued a report on Malaysia in which it said that the country offered “some of the most material and attractive upstream investment opportunities in Southeast Asia, primarily due to the need for additional gas supply.”
Woodmac said Monday that multiple breakdowns in the Sabah-Sarawak gas pipeline and a delayed final investment decision (FID) on the large Kasawari gas project have resulted in short-term supply crunch to the Bintulu MLNG plant, meant there was a golden opportunity for upstream players.
“We see this supply shortage persisting though until at least 2025, when major new fields are likely to be brought onstream. These include Jerun, Timi, Rosmari, Marjoram and Kasawari,” Woodmac said.
“This is a golden opportunity for upstream players to swiftly bring gas onstream and jump ahead of the queue: either in the form of increasing existing production or by developing smaller discoveries to tie into existing infrastructure. But speed is the key,” said Wood Mackenzie’s upstream research director Angus Rodger at the AOGC conference in Kuala Lumpur.
According to Wood Mackenzie, the most prospective basins for new discoveries and undeveloped gas resources in Malaysia are in offshore Sarawak.
In this region, Wood Mackenzie estimates there is already 17 trillion cubic feet (tcf) of discovered and undeveloped gas that is commercially viable. However, as many of the easiest fields have already been commercialized, those that remain will be more difficult and costly to develop. For example, half of the 17 tcf requires investment in technology to process higher levels of carbon dioxide and/or other contaminants.
“For explorers, this means that there are additional benefits in drilling for new sources of cleaner gas. Any such discoveries stand a good chance of leap-frogging the queue of existing resources and getting fast-tracked for development,” Woodmac said.
Malaysia, the consultancy added, has proved itself to be the hottest spot for material exploration in Southeast Asia over the last decade. Between 2010 and 2018, Malaysia had the largest annual new reserves added through exploration in six of those years. Of the 11.2 billion barrels of oil equivalent discovered in Southeast Asia through that period, around half was found in Malaysia, highlighting its enormous exploration potential, Woodmac added.
“We expect PETRONAS to ramp up its own exploration efforts, particularly in deepwater Sarawak, to prove up easier-to-develop resources. It will also invest in new technology to develop some of the more challenging accumulations,” added Rodger.
“The national oil company (NOC) has already proven itself as a global technology leader through its deployment of the PFLNG1 vessel and development of the RAPID project. We expect this investment in innovation to continue, which sets PETRONAS apart from many of its NOC peer group,” commented Rodger.
Offshore Energy Today Staff
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