PTTEP, Petronas discover gas off Malaysia

Thailand’s PTTEP and Malaysia’s Petronas have made a gas discovery from Dokong-1 wildcat exploration well in Block SK417 Production Sharing Contract (PSC), located in the shallow waters of Baram Province, off the coast of Sarawak, Malaysia.

PTTEP HK Offshore Limited is the operator for Block SK417 PSC with 80 per cent participating interest while Petronas Carigali, a subsidiary of Petronas, holds the remaining 20 per cent.

Block SK417 is located in the shallow waters, approximately 90 kilometres off the coast of Sarawak.

The PSC was signed in March 2018 as a result of the Malaysia Bid Round 2017.

PTTEP said on Wednesday that the drilling of Dokong-1 exploration well started in November 2020, targeting gas in the sandstone reservoir.

The Dokong-1 wildcat well was drilled to a total depth of 3,810 metres and encountered more than 80 metres of gas column.

The second exploration well will be drilled in the middle of this year as part of the exploration campaign, PTTEP added.

Phongsthorn Thavisin, PTTEP Chief Executive Officer, said “The finding of potential high-quality gas at Dokong-1 exploration well is PTTEP’s latest achievement in Malaysia following first gas production from Block H and a major gas discovery at SK410B’s Lang Lebah field.

“This drilling result paves the way for exploration of nearby prospects that have similar geological structures. It also presents an opportunity for PTTEP to synergize future development and production of SK417 with the adjacent areas and leverage on our strong expertise in cluster development”.

Petronas said in a separate announcement on Wednesday that the discovery of a gas column measuring more than 80 metres in the Middle to Late Miocene Cycle VI-VII reservoirs further validates the potential of the remaining prospects in Baram Province.

This finding of contaminant-free gas in Dokong-1 not only revives Baram shallow clastics play but also proves the presence of more sweet gas opportunities within the area, Petronas added.

Petronas Senior Vice President of Malaysia Petroleum Management, Mohamed Firouz Asnan, said: “The Dokong-1 exploration well is one of several recent successes in Malaysia’s exploration activities. Monetisation of sweet gas discovery in Baram Province can be supported through existing infrastructure and will contribute towards Petronas’ aspiration in delivering reliable, stable and cleaner energy supply to domestic and global markets.

“In addition, the Dokong-1 discovery reinvigorates the entire exploration landscape of the Baram Province, strengthening the role of Baram gas supply network as part of the larger Sarawak gas system. Petronas, together with the PSC parties, are currently undertaking further evaluation to determine the full extent of the discovery”, he added.

Meanwhile, Petronas will be offering four shallow-water blocks in Sarawak as part of the upcoming Malaysia Bid Round 2021, which will take place on 26 February 2021.

Petronas and PTTEP have also recently made a gas discovery from the Lang Lebah-2 appraisal well off the coast of Sarawak, Malaysia.

Furthermore, the two companies are also partners in the Rotan and Buluh deepwater fields located in Block H offshore Sabah, Malaysia.

PTTEP last week confirmed the start-up of natural gas production from these two fields.

The gas from the fields is received by the Petronas-owned PFLNG Dua, which has also recently produced its first drop of LNG.