Woodmac: PTTEP’s Malaysia gas find is world’s 7th largest in 2019
Thai PTTEP on Thursday said it had made largest ever gas discovery ever in Malaysia, but came short of providing the estimated size. It said the discovery offshore Sarawak was a “multi-tcf” one. Energy intelligence firm Wood Mackenzie thinks the discovery is the seventh largest global discovery of the year.
In his take on PTTEP’s discovery at the Lang Lebah-1RDR2, the first exploration well in Sarawak SK410B Project, Wood Mackenzie senior analyst Huong Tra Ho said: “We estimate an indicative size of 2 trillion cubic feet, making this the 7th largest global discovery of the year. It is in the deeper, HP/HT reservoir of the basin, and looks potentially to have relatively ‘clean’ gas qualities and low impurity content.”
The analyst said the discovery was located in the gas-rich Sarawak-Luconia-East Natuna basin, which has enjoyed an exploration success rate of 55% over the past 10 years, above the 37% global average.
“The Miocene carbonate play, in particular, has produced a number of high-profile finds over the years, including Pegaga, B14, Kuang North and Kasawari. But issues around gas impurities and contaminants have stymied development plans for some of the fields,” Huong Tra Ho.
“We expect Lang Lebah to have a high chance of commercialization as feedgas into the Malaysia LNG (MLNG) complex. The plant is in urgent need of new supply as existing sources have only met 85% of its requirements in 2018. Legacy fields have experienced sand influx and water breakthroughs, while many of the remaining undeveloped discoveries require advanced CO2 and H2S processing. Gas quality will thus be crucial to determining the speed and ease of future monetization plans for Lang Lebah, which is also close to existing infrastructure.
“For PTTEP, Lang Lebah highlights the company’s capability in handling technically challenging reservoirs and reinforces its business development credentials. The discovery is now the largest operated find in company history, ahead of the Zawtika field (~280 mmboe) in Myanmar.
“It also represents a big win for the Thai national oil company, which has been aggressively securing resources across Southeast Asia over the past year, particularly Malaysia. The news comes on the back of PTTEP’s acquisition of Partex and Murphy Oil’s Malaysia portfolio, which together make it the third largest upstream acquirer in 2019.”
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.
PTTEP said Thursday the drilling result of the Lang Lebah-1RDR2 was 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.