SapuraOMV Upstream today announced that its whollyowned subsidiary, SapuraOMV Upstream (Sarawak) Inc. and its partners, PETRONAS Carigali Sdn Bhd and Sarawak Shell Berhad have signed the full-term Upstream Gas Sales Agreement (UGSA) with Petroliam Nasional Berhad (PETRONAS) for the Gorek, Larak and Bakong fields under the first development phase of the SK408 Production Sharing Contract (PSC).
Under the UGSA, gas produced from the Gorek, Larak and Bakong fields will be supplied to the PETRONAS Liquefied Natural Gas (LNG) Complex in Bintulu.
“The UGSA further strengthens SapuraOMV’s position as a significant supplier of natural gas in Malaysia and is another significant step in unlocking the value of our gas assets”, said SapuraOMV Chairman Tan Sri Dato’ Seri Shahril Shamsuddin.
The SK408 development project is expected to deliver first gas in the fourth quarter of 2019. “The added volume from Gorek, Larak and Bakong is part of our growth strategy to realize our vision of becoming one of the largest independent oil and gas companies in the region”, Tan Sri Shahril added.
The Gorek, Larak and Bakong fields are part of the discoveries made by SapuraOMV during its 2014 drilling campaign and are being developed as three separate wellhead platforms for onward sales to the PETRONAS LNG Complex.
SapuraOMV is the operator for the Larak and Bakong fields while Sarawak Shell Berhad is the operator for the Gorek field.
The SK408 gas fields will be SapuraOMV’s second major upstream gas development project in East Malaysia. The company also holds participating interest in four production blocks in Peninsular Malaysia.
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