Petronas' Sarawak Marks First Onshore Discovery in 24 Years

Petronas' Sarawak Marks First Onshore Discovery in 24 Years

State-backed Petronas is starting 2013 on a high note, with new oil and gas discoveries made onshore Sarawak.

The company confirmed in a statement emailed to Rigzone Friday, stating that it has found oil and gas in the Adong Kecil West-1 well in the onshore block SK333, after a lapse of 24 years. The last onshore discovery was the Asam Paya Field in 1989, also in Sarawak.

The well, drilled by JX Nippon Oil & Gas Exploration to a depth of 10,400 feet (3,170 meters), encountered approximately 1,145 feet (349 meters) of net hydrocarbon thickness. Two drill-stem tests achieved flow rates of 440 barrels of crude oil per day and 11.5 million standard cubic feet of gas per day.

JX Nippon, the operator of SK333, is at present conducting technical assessments to determine the resource volume of the field.

Based on the drilling results, there are also indications that the deeper sections of in the onshore area could hold additional upside potential for hydrocarbon accumulation. Drilling operations are however more challenging for the deeper reservoirs and rigs with higher specifications will be required to test such intervals.

To-date, three discoveries have been found onshore Sarawak: the Miri, Asam Paya and Adong Kecil West fields.

"These discoveries prove that onshore Sarawak has the potential for more oil and gas accumulations where the Miri field, Malaysia's first oil field, was discovered way back in 1910," Petronas said in a statement.

Petronas is this year placing a renewed emphasis on maximizing domestic oil reserves, particularly in Sarawak, after years of international expansion. The company announced in November last year that it made two major offshore gas discoveries in Sarawak, which combined could hold over 4 trillion cubic feet of natural gas reserves.


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