PTTEP makes gas discovery in offshore Sarawak, Malaysia
PTT Exploration and Production (PTTEP) has announced that PTTEP HK Offshore Limited Maylasia (PTTEP HKO), a wholly owned subsidiary of PTTEP, has made a discovery of gas at the Lang Lebah-1RDR2, the first exploration well in Sarawak SK410B Project located in offshore Sarawak, Malaysia.
Commenced in March 2019, the drilling of Lang Lebah-1RDR2 targeted non-associated gas in the primary target of the Middle Miocene cycle IV/V carbonate reservoir and undertaken to a total depth of 3,810 m. The well encountered 252 m of net gas pay, indicating multi-TCF gas discovery. The well was tested in carbonate main target reservoir with a completion-constrained (2 7/8-in tubing) rate of 41.3 MMSCFD and 246 barrel of condensate per day (BCPD) through 40/64-in. choke size.
The drilling result of the Lang Lebah-1RDR2 is historically PTTEP’s largest discovery. This affirms PTTEP’s strategy in organically growing reserves from exploration activities. The discovery will require further drilling to confirm upside potential.
Sarawak SK410B Project is located in shallow waters, approximately 90 km offshore Sarawak, with the acreages of approximately 1,870 sq km. The consortium consists of PTTEP HKO (the Operator), KUFPEC and PETRONAS Carigali Sdn. Bhd. with participating interests of 42.5%, 42.5% and 15% respectively.
“We estimate an indicative size of 2 trillion cu ft, making this the 7th largest global discovery of the year. It is in the deeper, HPHT reservoir of the basin, and looks potentially to have relatively ‘clean’ gas qualities and low impurity content,” said analyst Shi Wen Ann Lee with Wood Mackenzie. “The Miocene carbonate play, in particular, has produced a number of high-profile finds over the years, including Pegaga, B14, Kuang North and Kasawari. But issues around gas impurities and contaminants have stymied development plans for some of the fields.”
“We expect Lang Lebah to have a high chance of commercialization as feedgas into the Malaysia LNG (MLNG) complex. The plant is in urgent need of new supply as existing sources have only met 85% of its requirements in 2018. Legacy fields have experienced sand influx and water breakthroughs, while many of the remaining undeveloped discoveries require advanced CO2 and H2S processing. Gas quality will thus be crucial to determining the speed and ease of future monetization plans for Lang Lebah, which is also close to existing infrastructure,” Wood Mackenzie continued.
“It also represents a big win for the Thai national oil company, which has been aggressively securing resources across Southeast Asia over the past year, particularly Malaysia. The news comes on the back of PTTEP’s acquisition of Partex and Murphy Oil‘s Malaysia portfolio, which together make it the third largest upstream acquirer in 2019.”
