PTTEP has scored another exploration success offshore Sarawak, Malaysia, with its second consecutive discovery well in Block SK417.
The first discovery well — Dokong-1 — was announced in February, hitting more than 80 metres of pay in a gas column.
Provisional results of the second well — Nangka-1 — were announced on Tuesday by the Malaysian national oil company Petronas which partners PTTEP in SK417 with a 20% interest.
Nangka-1 was drilled to a total depth of 3758 metres in September. Sweet gas was discovered in the Middle to Late Miocene Cycle VI clastic reservoirs "further validating the hydrocarbon potential in the surrounding areas", said Petronas, which refers to the area as Baram Province.
Petronas' senior vice president of Malaysia Petroleum Management, Mohamed Firouz Asnan, said: “The finding of contaminant-free gas in Nangka-1 reaffirms sweet gas opportunities within the area, and subsequently upgrades Baram clastics play.
“This second gas find further reinvigorates the Baram Province, which is part of the established Baram Delta region, signalling potential for more discoveries in the neighbouring acreages.
"The availability of existing facilities within the region will allow the Petroleum Arrangement Contractors to monetise their discoveries quicker and cheaper through tie-back solutions.”
Block SK417 is located in shallow waters, 90 kilometres off the coast of Sarawak. PTTEP has an 80% operator interest with Petronas Carigali on 20%.
PTTEP's drilling successes this year have been one of the major highlights for Malaysia's upstream oil and gas sector.
In its third-quarter 2021 report, PTTEP said that in addition to the large Lang Lebah gas discoveries in Block SK410B, it discovered oil and gas at the Sirung-1 well in SK405B, found gas at the Kulintang-1 well in SK438 and then drilled the Mak Yong-1 well with results being evaluated.
Meanwhile, two exploration wells are planned in 2022 in Block SK314A, and two exploration wells are planned to be drilled in 2022/2023 in Block PM407.
To highlight that exploration drilling success is not guaranteed, the company drilled two exploration wells in Block PM415 — Jelawai-1 and Bebaru-1 — but no commercial reserves were found.
PTTEP has been using the jack-up drilling rigs Gunnlod and Saga owned by Borr Drilling.
Development plans
In terms of development planning for this year's discoveries offshore Sarawak, PTTEP said in its recent quarterly report that development planning is in progress for its "North and South Sarawak areas".
North Sarawak refers to the Lang Lebah discovery in Block SK410B with multi-trillion cubic feet of gas reserves, and to the two discoveries in Block SK417.
The South Sarawak area comprises Blocks SK405B and SK438.
The Lang Lebah project — which PTTEP calls a "giant gas discovery" but with a high carbon dioxide content — is under development, with a final investment decision planned in 2023.
Montri Rawanchaikul, PTTEP's chief executive, said this year's drilling successes were "made possible through decades of dedication, expertise, and our strong partnership with Petronas. PTTEP will continue expanding exploration possibilities in Malaysia to bring about more successes to serve energy demand”.
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