SapuraOMV enters full term upstream gas sales agreement with Petronas

PETALING JAYA: SapuraOMV Upstream’s wholly owned subsidiary SapuraOMV Upstream (Sarawak) Inc and its partners Petronas Carigali

Sdn Bhd and Sarawak Shell Bhd today signed the full-term upstream gas sales agreement (UGSA) with Petroliam Nasional Bhd (Petronas) for the SK408 gas fields.

The sales agreement is for the supply of the gas produced from Gorek, Larak and Bakong fields under the first development phase of the SK408 Production Sharing Contract (PSC) to the Petronas Liquefied Natural Gas (LNG) Complex in Bintulu.

“The UGSA further strengthens SapuraOMV’s position as a significant supplier of natural gas in Malaysia and is another significant step in unlocking the value of our gas assets,” said SapuraOMV chairman Tan Sri Shahril Shamsuddin in a statement.

The SK408 development project is expected to deliver its first gas in the fourth quarter this year.

“The added volume from Gorek, Larak and Bakong is part of our growth strategy to realise our vision of becoming one of the largest independent oil and gas companies in the region.”

The Gorek, Larak and Bakong fields are part of the discoveries made by SapuraOMV during its drilling campaign in 2014 and are being developed as three separate wellhead platforms for onward sales to the Petronas LNG complex.

Sarawak Shell is the operator for the Gorek field, while the Larak and Bakong fields are operated by SapuraOMV.

The SK408 gas fields will be SapuraOMV’s second major upstream gas development project in East Malaysia. The group also holds participating interest in four production blocks in Peninsular Malaysia.

source https://www.thesundaily.my/business/sapuraomv-enters-full-term-upstream-gas-sales-agreement-with-petronas-LY1346580