Sapura, Partners Take Malaysia FID

Malaysia’s Sapura Energy said April 11 its wholly-owned upstream subsidiary, Sapura E&P and partners state Petronas and Anglo-Dutch major Shell have taken the final investment decision (FID) to develop the Gorek, Larak and Bakong gas fields as phase 1 in the SK408 production-sharing contract.

The FID follows the field development plan approval from Petronas and agreement of key terms in the gas sales contract for phase 1 of the SK408 gas field. “The development of the SK408 gas fields further strengthens Sapura Energy’s position in Malaysia as a significant partner and supplier of natural gas to one of the world's largest LNG production facilities, the Petronas MLNG complex in Bintulu,” said Sapura Energy CEO Tan Sri Dato’ Seri Shahril Shamsuddin.

Sapura E&P found the fields in its 2014 drilling campaign and they will be developed as three separate wellhead platforms tied back to the existing processing facility and to the MLNG complex. The SK408 gas fields will be Sapura E&P's second major development in East Malaysia, after the now-producing SK310 B15 gas field.

“The final investment decision represents a critical milestone as we further progress towards unlocking the value of our gas fields thus, providing clear visibility of our long-term gas monetisation plans. With the recent extensive addition to our exploration acreage in Mexico and New Zealand, the Group has been able to geographically diversify our E&P segment and put in place a well balanced portfolio across exploration, development and production phases,” said Tan Sri Shahril.

Sapura E&P is the development and production operator of the Larak and Bakong fields while Shell is the development and production operator of the Gorek field.