Thailand’s national upstream company PTTEP is planning to soon drill an appraisal well on its Sirung oil and gas discovery offshore Malaysia to assess the upside potential of its latest hydrocarbons find.

PTTEP and its partners on Tuesday confirmed what they described as a significant oil and gas discovery on the Block SK 405B production sharing contract offshore Sarawak, East Malaysia.

The Sirung-1 wildcat — the first to be drilled on the PSC — is located in the shallow waters of Balingian province, about 137 kilometres off the coast of Bintulu, Sarawak.

The exploration well was spudded in January and reached a total depth of 2538 metres the following month.

Sirung-1 hit a significant oil and gas column — exceeding 100 metres — within the Oligocene to Middle Miocene sandstone clastic reservoir.

No further details were revealed and it is not known whether Sirung-1 was flow tested.

“The Sirung-1 exploration well marks PTTEP’s third discovery offshore Malaysia following SK 410B’s Lang Lebah and SK417’s Dokong," said the company's chief executive Phongsthorn Thavisin.

"PTTEP also plans to explore nearby prospects in this PSC next year. The achievements have strengthened our investment base as we continue to expand our exploration horizon in Malaysia."

Co-venturer Malaysia’s national oil company Petronas on Tuesday added the Sirung success further validates the potential of Balingian province, with remaining prospects yet to be explored.

“The Sirung-1 discovery further proves the presence of oil, especially in the under-explored deeper play within the Balingian province. This came after similar success in an infill well at D18 field,” said Petronas vice president of exploration, upstream, Emeliana Rice-Oxley.

Pursuing similar plays

“We are well positioned to pursue a similar play in the other two neighbouring blocks in the same province, namely blocks SK 411 and SK 306. As such, developing this block and other surrounding areas remains an integral part of Petronas and our partners’ long-term growth plans.”

PTTEP has a 59.5% interest in Block SK 405B, and its partners are Moeco with 25.5% and Petronas Carigali on 15%. The PSC was signed in November 2017 after the acreage was offered in the Malaysia Bid Round (MBR) 2015.

“We are very encouraged by the continued success with our partners on the consecutive discoveries this year in Malaysia and remain optimistic in our exploration activities for 2021,” added Rice-Oxley.

For MBR 2021, Petronas is offering 13 new opportunities in the prolific basins of Malaysia that are accompanied by enhanced fiscal and non-fiscal terms.

This initiative is said to be part of Petronas’ continuous efforts to grow with its partners in Malaysia.

Exploration

PTTEP makes significant oil and gas discovery offshore Malaysia