SARAWAK wants further discussions with Petronas over its discovery of two new offshore gas fields.

The state government, in a statement today, said the talks will be based on the terms of the commercial settlement agreement that was inked on December 7 last year over the state’s sales tax (SST) on petroleum products and oil mining laws.

The state government said Petronas had informed Sarawak of the discovery of the Lang Lebah-2 exploration appraisal well in Block SK410B in Central Luconia on February 10, and Dokong 1 in Block SK417 today.

The discussions “will bring about greater benefits to both Sarawak and Petronas”, the chief minister’s office said.

Block SK410B is operated by PTTEP HK Offshore Ltd, KUFPEC Malaysia (SK-410B) Ltd and Petronas Carigali Sdn Bhd, a subsidiary of Petronas.

Petronas said Block SK410B was promoted in the Malaysia Bid Round 2015, resulting with the PSC being signed in July 2016.

It said the Lang Lebah-2 exploration well was drilled to a total depth of 4,320m in mid-January this year with over 600m of proven net gas pay.

The national oil company said the well was tested and flowed at 50 million cubic feet of gas per day with a significant amount of gas in place.

“This was an appraisal drilling to confirm the upside potential and to accelerate the development programme,” it said.

Today, Petronas confirmed that it had discovered gas in the Dokong-1 wildcat exploration well in the Block SK417 production sharing contract (PSC).

It said the contaminant-free gas find in Dokong-1 in the shallow waters of Baram province off the coast of Sarawak, revives the Baram shallow clastics play.

“(It) also proves the presence of more sweet gas opportunities within the area,” Petronas said.

The wildcat exploration well was drilled to a total depth of 3,810m in mid-January, it said.

Petronas senior vice president of Malaysia petroleum management, Mohamed Firouz Asnan said the firm and the PSC parties were undertaking further evaluation to determine the full extent of the discovery.

PTTEP HK Offshore Limited is the operator for the block, with 80% participating interest, while a unit of Petronas, Petronas Carigali Sdn Bhd, holds the remaining interest. – February 24, 2021.