Revival in Sarawak’s onshore O&G activities

KUCHING: Petra Energy Bhd and its partner Petroleum Sarawak Bhd (Petros) have commenced their first onshore drilling at Block SK433 in the Miri-Marudi area in northern Sarawak.

Block SK433, which covers some 3,100 sq km, includes the discovered Adong Kecil West field.

The inauguration of the onshore drilling, which was officiated by Sarawak Premier Tan Sri Abang Johari Tun Openg last week, marked a momentous milestone in the revival of Sarawak’s onshore oil and gas (O&G) activities.

The historic event took place at Miri’s Oil Well No. 1, fondly known as “The Grand Old Lady”, on Canada Hill.

The revival of Sarawak’s onshore O&G gas activities came after the first oil well in Malaysia was drilled in Canada Hill in 1910.

The Block SK433 project is the result of the inaugural onshore petroleum contract awarded to state-owned Petros in July 2021 under the Sarawak Oil Mining Ordinance 1958, alongside Block SK334 situated near Limbang and Lawas.

Petros awarded a petroleum contract to the Petra Energy-Umza Bhd joint-venture (via their wholly-owned subsidiaries Petra Energy Development Sdn Bhd (PEDSB) and Umza Engineering Sdn Bhd), which is related to exploration, development and production of petroleum in Block SK433. The contract is one of production sharing.

Earlier, Petra Energy-Uzma said the award was a result of a competitive bidding exercise that was managed by Petros after technical and financial essential-capability assessment, as well as a work-programme aimed at rejuvenating exploration and production activities for the Block SK433 contract area.

PEDSB had been studying Block SK433 for several years.

The contract is for 29 years, with phase one for an initial four years with an option to extend for another year.

Upon successful outcome of phase one, the subsequent phase two will involve development and production activities.

The PEDSB-Uzma joint venture aims to monetise the discovered field with an extended production system following a successful appraisal campaign.

“The initiation of drilling at SK433 is testament to the team’s hard work, dedication and expertise in bringing the project to life and employs 75% of Sarawakians who are currently working at the drilling site.

“The workforce is expected to increase as operations pick up,” said Petros and Petra Energy in a joint media release.

Petra Energy executive director and group chief executive officer Datuk Anthony Firdauz Bujang said: “Our operations at SK433 will revitalise the onshore exploration and production of O&G and we are motivated to unlock the potential of this field and contribute to energy security. We are optimistic about the prospects that lie ahead.”

PEDSB, which is the operator under the contract for the joint-venture partnership, has experience in upstream field development and production in the Kapal Banang Meranti Small Fields Risk Service Contract in 2012.

Petra Energy was the sole operator of the Banang oilfield, which is located offshore Terengganu under a technical agreement with Petroliam Nasional Bhd.

Abang Johari said the natural gas produced from the Adong Kecil West field would be supplied to a 400 megawatt gas turbine power plant, which is currently being constructed in Lutong, Miri and scheduled to commence operations in 2027.

He suggested that the Block SK433 Adong Kecil West field be named “The Grand New Lady of Sarawak.”

“We are looking forward to a potential drilling of an exploration well (for Block SK344) in 2025,” he said.

Petros is wrapping up a joint technical study in Block SK344.

Apart from drilling two apprasial-cum-development wells at Adong Kecil West, Abang Johari said Petros and Petra Energy would also be acquiring 100 line kilometres of new 2D seismic and reprocessing 500 line kilometres of existing 2D seismic, as well as completing the regional geological and geophysical studies to further improve the prospects of Block SK433.