KUALA LUMPUR: A unit of SapuraKencana Petroleum Bhd has signed the SK310 upstream gas sales agreement in relation to the production of gas from the B15 Gas Field.
SapuraKencana said in a statement on Monday that the agreement was signed on June 23, 2016, between Petroliam Nasional Berhad (PETRONAS) as gas buyer and the contractors of the SK310 production sharing contract as joint sellers.
The unit, SapuraKencana Energy Sarawak Inc (SKE) is the operator of Block SK310 production sharing contract which was awarded by Petronas on June 17, 2008.
SKE has participating interest of 30%, while PETRONAS Carigali Sdn Bhd has 40%, and Diamond Energy Sarawak Sdn Bhd, a subsidiary of Mitsubishi Corporation has 30%.
The B15 gas field which was discovered in December 2010 is located within the SK310 production sharing contract area, offshore East Malaysia.
The development will comprise a central processing platform with a 35km gas evacuation pipeline to be tied into the existing infrastructure.
The B15 gas field will deliver gas to the Malaysia Liquefied Natural Gas (MLNG) complex in Bintulu, Sarawak, with the first delivery targeted to be in the fourth quarter of 2017.
“I would like to thank PETRONAS and the SK310 JV partners for their efforts in getting the project to realisation.
“The SK310 upstream gas sales agreement marks SKE’s first participation in a Gas Sales Agreement for East Malaysia,” said SKPB president and group CEO Tan Sri Shahril Shamsuddin.