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    SapuraOMV Flows First Gas from Malaysian Block


It is the joint venture's second big project to start up, since the two companies set it up in late 2018.

by: William Powell

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SapuraOMV Flows First Gas from Malaysian Block

SapuraOMV Upstream announced January 13 first production from its Larak gas field under the SK408 Production Sharing Contract (PSC). The Gorek, Larak and Bakong fields in SK408 were discovered in 2014.

The gas is tied back into a processing facility and then transported to Petronas' LNG complex in Bintulu. “This achievement will strengthen our presence in the existing market, propelling us to become one of the most significant gas producer in the country and in the region,” said SapuraOMV.

OMV's upstream board member Johann Pleininger said the production start was "a positive signal and demonstrates OMV’s commitment to the Asia-Pacific hub. It shows once more the strengthening of the gas focus in our production portfolio.”

The SK408 development is SapuraOMV’s second major upstream gas development project in east Malaysia after the SK310 B15 gas field. SapuraOMV’s production is expected increase to more than 30,000 barrels of oil equiavalent/day, mostly gas, when SK408 is at full capacity, most of which is gas. SapuraOMV’s partners are the Anglo-Dutch major Shell and Petronas with 30% each.

Malaysian producer Sapura and OMV set up the 50-50 upstream joint venture in November 2018.