The development of SK408 gas fields is expected to help in meeting the growing gas demand in Asia

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The SK408 development involves the commercialisation of gas reserves from the Gorek, Larak and Bakong fields. Credit: FreeImages/Vee TEC.

SapuraOMV Upstream has begun gas production from the SK408 block, offshore Malaysia, following the startup of the Larak gas field.

SapuraOMV Upstream, a joint venture between Malaysia’s Sapura and Austrian OMV, discovered the SK408 gas fields in a drilling campaign in 2014.

Tied back into an existing processing facility, the SK408 gas field development is expected to help in meeting the growing gas demand in Asia.

Gas produced by the fields is transported through existing pipelines for onward gas processing at PETRONAS LNG complex in Bintulu.

SapuraOMV chairman Tan Sri Dato’ Seri Shahril Shamsuddin said: “This achievement will strengthen our presence in the existing market, propelling us to become one of the most significant gas producer in the country and in the region.

“This will further cement our position as a trusted and reliable oil and gas company.”

Following the start of production from the SK310 B15 gas field, the SK408 is SapuraOMV’s second major upstream gas development project in East Malaysia.

SK408 field contains five gas discoveries

The SK408 development involves the commercialisation of gas reserves from the Gorek, Larak and Bakong fields. The final investment decision (FID) for the development of the three fields was taken in April 2018.

Located in the Central Luconia gas province 120km offshore Sarawak, Malaysia, the field comprises five gas discoveries that include Gorek, Larak, Bakong, Teja and Legundi. It covers a total area of 4,480km².

SapuraOMV’s production is anticipated to increase to over 30kboe/d, after the full ramp-up of the first phase of SK408.

The company partners with Sarawak Shell Berhad and PETRONAS Carigali in the block.

OMV deputy chairman and upstream executive board member Johann Pleininger said: “This production start is a positive signal and demonstrates OMV’s commitment to the Asia-Pacific hub. It shows once more the strengthening of the gas focus in our production portfolio.”