Online

See all articles

Block SK 316 divestment delayed

Asset hosts giant Kasawari gas field

Malaysia’s national oil company Petronas has delayed the potential divestment of a significant stake in Block SK 316 offshore Sarawak, East Malaysia that is home to the giant Kasawari gas field.

There has been a delay in the process, PTTEP President Phongsthorn Thavisin said on the sidelines of OTC Asia. The Thai national upstream player is still interested in coming on board this gas-rich acreage and would “normally be interested in 10% to 20% of such a prize, added Phongsthorn.

Petronas is set to this year decide whether to line up a partner for Block SK 316 or whether to solely pursue the exploitation of Kasawari, which has an estimated re­coverable resource of 3 trillion cubic feet of gas.

On offer is up to a 49% stake in the offshore block and Petronas had initially intended to reach a decision by end-2017.

The potential divestment process has reached its second stage, with interested players said to include PTTEP, Total, ExxonMobil, Shell, Kufpec and two Japanese companies.

Petronas has already outlined development plans for the high CO2 Kasawari field, with targeted production of 900 million cubic feet per day of gas.

Three consortia, each with a Malaysian partner - Sapura Energy with Saipem, Ranhill Worley plus Hyundai Heavy Industries, and Malaysia Marine & Heavy Engineering with Technip – had been vying to supply the large central processing platform.

The original development plan envisaged also a wellhead platform, bridge link and flare tripod.

Block SK 316 is also home to the producing NC3 gas field that supplies feedstock to Train 9 at Petronas’ LNG Complex at Bintulu, Sarawak.

*PTTEP is also hopeful of being awarded several exploration blocks in Malaysia from last year’s licensing round as it moves to work more closely with neighbouring counterpart Petronas.

Click here to read more of Upstream’s coverage from OTC Asia.