By Khairul Khalid
SapuraKencana Petroleum Bhd has gained approval from Petronas for the SK310 B15 gas field development project in East Malaysia, the company’s first upstream gas project in the country.
The project is under SapuraKencana Energy Inc (SKE), a wholly-owned subsidiary of SapuraKencana Petroleum Bhd.
“The Field Development Plan approval from Petronas marks SKE’s first development in the upstream gas project in Malaysia. We will continue to pursue future gas development projects from our other successful gas discoveries in Malaysia which is part of SKE’s portfolio today,” said Shahril Shamsuddin, president and group chief executive officer of SapuraKencana Petroleum, in a statement today.
With this approval, SKE will commence the development phase for this project and the first gas delivery is targeted for the fourth quarter of 2017.
The B15 field, which was discovered in December 2010, is located within the SK310 production sharing contract (PSC) area, offshore East Malaysia.
“The development will comprise a central processing platform with a 35km gas evacuation pipeline to be tied into existing infrastructure. The B15 field is expected to produce 100 million standard cubic feet per day of hydrocarbon gas for the Petronas liquefied natural gas complex in Bintulu, Sarawak,” said SapuraKencana.
SKE, via SapuraKencana Energy Sarawak Inc, is the operator of the SK310 PSC with a 30% participating interest and partners with Petronas Carigali Sdn Bhd with 40% and Diamond Energy Sarawak Sdn Bhd, a subsidiary of Mitsubishi Corp with 30%.
At the close of trading today, SapuraKencana was at RM2.25 per share, up 9 sen.
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