KUALA LUMPUR: Sapura Energy Bhd and partners Petronas Carigali Sdn Bhd and Sarawak Shell Bhd have taken the final investment decision (FID) to develop gas fields in Sarawak.
Wholly-owned subsidiary Sapura Exploration and Production (Sarawak) Inc (Sapura E&P) is the development and production operator of the Larak and Bakong fields while Sarawak Shell is the development and production operator of the Gorek field.
Shares in Sapura Energy jumped 11 sen, or 20% to 64.5 sen.
“The development of the SK408 gas fields further strengthens Sapura Energy’s position in Malaysia as a significant partner and supplier of natural gas to one of the world’s largest LNG production facilities, the Petronas MLNG complex in Bintulu,” its president and group chief executive officer said Tan Sri Shahril Shamsuddin said in a statement.
The fields under the SK408 gas field development project are part of the discoveries made by Sapura E&P in its 2014 drilling campaign.
The fields will be developed as three separate wellhead platforms tied back to the existing processing facility and to the MLNG complex.
The SK408 gas fields will be Sapura E&P’s second major upstream gas development project in East Malaysia, after the successful development and commencement of production from the SK310 B15 gas field.
“The final investment decision represents a critical milestone as we further progress towards unlocking the value of our gas fields thus, providing clear visibility of our long-term gas monetisation plans,” Shahril said.
“With the recent extensive addition to our exploration acreage in Mexico and New Zealand, the group has been able to geographically diversify our E&P segment and put in place a well-balanced portfolio across exploration, development and production phases,” he added.