Petronas Carigali JV strikes oil off Sabah

KUALA LUMPUR: A Japanese-led group exploring Deepwater Block R off Sabah, which includes Petronas Carigali, has made “a significant oil discovery” at the Bestari-1 exploration well.

The group comprises operator JX Nippon Oil & Gas (27.5% interest), Inpex Corp of Japan (27.5%), Petronas Carigali (25%) and Australia-listed Santos (20%).

Santos told the Australian Stock Exchange on Wednesday that the discovery was being evaluated with a view to planning an appraisal campaign.

“The Bestari-1 well encountered 67 metres of net oil pay in multiple sand packages within the primary Miocene age formation at true vertical subsea depths ranging from 1,860m to 2,702m,” it said.

“The oil bearing sands are of high quality with good porosity and permeability. Oil samples, recovered from wireline pressure and sampling tools, confirm 27-30 degree API Oil with no indication of hydrogen sulphide and neglible carbon dioxide.”

Petronas awarded the production sharing contract for Deepwater Block R, a 672 sq km area where the well is located, in January 2012.

In its media announcement at the time, Petroliam Nasional Bhd said the partners for the Deepwater Block R were expected to drill three wildcat wells and acquire 700 sq km of new 3D seismic data,

The minimum financial commitment for Deepwater Block R was said to be US$123mil.

The national oil company said the exploration block was near key discoveries such as the Kikeh, Kebabangan, and Gumusut-Kakap fields.

Santos bought its 20% interest in the Block R contract in January this year.

Corporate News , Oil & Gas