Trio gets hold of Malaysian offshore block with 12 gas discoveries

Southeast Asia-focused E&P company Seascape Energy, formerly known as Longboat Energy, EnQuest Petroleum Production Malaysia, an affiliate of London Stock Exchange-listed energy player EnQuest, and Petroleum Sarawak Exploration & Production (PSEP) have enriched their portfolios with a small field asset production sharing contract (SFA PSC) for a block that contains 12 gas discoveries off the coast of Sarawak, Malaysia.

The award of the PSC over the DEWA complex cluster was made under the Malaysia Bid Round Plus (MBR+) organized by Petronas through its subsidiary, Malaysia Petroleum Management. EnQuest will hold a 42%-operating interest in the PSC, with PSEP and Seascape Energy holding 30% and 28% stakes, respectively.

DEWA is said to comprise 12 gas discoveries in shallow water (40–50 meters) near existing infrastructure, situated approximately 50 kilometers off the coast of Sarawak in what is said to be a proven hydrocarbon area. The discoveries in question are D30, D30W, Danau, Daya, Daya North, D41, D41W, Dafnah West, Dana, Darma, West Acis, and Spaoh. According to Seascape, gas was originally found in the area in 1982 but previous operators decided to develop oil production instead.

Focus will initially be placed on the D30, Danau, D41, D41W, Dana, and Dafnah West discoveries, containing an estimated gross amount of 500 billion cubic feet (bcf) gas initially in place (GIIP), or around 83 million barrels of oil equivalent (mmboe). 

“We are delighted to have been awarded the DEWA Complex Cluster SFA PSC, especially on our 10th anniversary in Malaysia and marking our return to Sarawak after the Tanjong Baram Small Field Risk Service Contract,” noted EnQuest’s Chief Executive Officer, Amjad Bseisu.

Seascape broadly characterizes these fields as having clastic reservoirs with large gas columns and good hydrocarbon mobilities. There is said to be a “significant” set of data related to the fields, including 35 well penetrations, well logs, multiple drill stem tests (DSTs), and modular formation dynamics testers (MDTs), as well as 3D seismic coverage across the area.

“The block contains several undeveloped discoveries providing future opportunities for EnQuest to demonstrate its proven capabilities in innovative and cost-effective development. We would like to thank PETRONAS for their confidence in awarding us this PSC and are pleased to have our first joint venture with PSEP,” added Bseisu.

Due to water depth and nearby infrastructure, the trio is targeting a low-cost development plan deploying normally unmanned platforms with minimal processing to support a potential production plateau of up to 100 million standard cubic feet per day (mmscfd).

The partners undertook to complete the resource assessment of the fields and submit a field development and abandonment plan (FDAP) for the first cluster during the initial two-year pre-development term of the SFA PSC.

Before changing its name in September, Seascape decided to bid farewell to Norway and shift the focus of its E&P activities to Southeast Asia. Alongside its interest in the new block, the firm holds a stake in the Kertang prospect located in Block 2A offshore Malaysia, whose giant scale was confirmed in late June.