Petronas Carigali (PCSB), a wholly-owned subsidiary of Malaysia’s state-owned oil and gas company Petronas, has made a new oil and gas discovery offshore Malaysia.

The discovery was made at the Nahara-1 well in Block SK306, located in the shallow waters of Balingian Province about 150km from Bintulu, off the coast of Sarawak.

Nahara-1 was drilled to a total depth of 2,468m and encountered hydrocarbon in the Late Oligocene to Middle Miocene aged sedimentary sequences.

The well also established light oil with minimal contaminants, after production testing.

Petronas exploration vice president Mohd Redhani Abdul Rahman said: “We are excited with this discovery and its impact on the future exploration effort in the surrounding areas.

Nahara-1 is a significant oil discovery by PCSB within the last decade. It is a testament to the vast potential in Malaysia’s prolific basins which remain highly prospective.”

“The discovery also reinforces PCSB’s current exploration strategy of renewing focus in its exploration efforts in Malaysia’s basins.”

PCSB owns the 100% interest in the Production Sharing Contract for Block SK306 and is also the operator of the block.

Last month, PCSB has reached the Final Investment Decision (FID) for the development of its Kasawari CO2 Sequestration (CCS) project offshore Sarawak.

Located in Block SK316, about 200km off Bintulu, the CCS project is expected to reduce carbon dioxide volume emitted through flaring by 3.3Mt CO2 annually.

Earlier this year, Petronas signed an agreement with the Abu Dhabi National Oil Co. (ADNOC), for the exploration and appraisal of Unconventional Onshore Block 1 in the UAE.

The onshore block covers an area of 2,000km² in the Al Dhafra region, Abu Dhabi.

Under the agreement with ADNOC, Petronas will obtain full equity and operatorship for exploring and appraising unconventional oil in the concession area.