KUCHING: The Adong Kechil West (AKW) field in Marudi, northern Sarawak – operated by Petra Energy Bhd
in partnership with Petroleum Sarawak Bhd (Petros) – will next work on supplying gas to the Miri combined-cycle gas turbine power plant project after commencing its oil production two weeks ago.
The next phase of AKW project will focus on delivering production facilities and essential infrastructure support for the gas turbine power plant project, which is targeted for commissioning by end-2027, according to state-owned Petros.
The 500MW gas turbine power plant project is a key component of the Sarawak Gas Roadmap in the northern hub of the state. Construction of the project, which is estimated at a cost of RM2bil, had reached 45% three months ago.
“This development will further strengthen supply resilience for Miri’s future energy needs, while reinforcing Sarawak’s long-term energy security,” said Petros.
The commissioning of the AKW field project marked a major milestone as it revived Sarawak’s onshore oil production after a lapse of 50 years.
Initial production stands at 800 barrels of oil per day, or 24,000 barrels per month.
The first oil well in Malaysia was drilled in Canada Hill, Miri, in 1910.
Petra Energy said its subsidiary, Petra Energy Development Sdn Bhd (PEDSB), had successfully achieved first oil relating to the exploration, development and production of petroleum in Block SK433, onshore Sarawak, on July 18.
“The oil well rate is expected to be progressively optimised as the facilities continue to stablise and operational performance is enhanced.
“This achievement marks a significant milestone in the development of Block SK433,” it added in a recent filing with Bursa Malaysia.
To recap, Petros awarded a petroleum production sharing contract to the Petra Energy and Uzma Bhd joint venture (via their wholly-owned subsidiaries, PEDSB and Uzma Engineering Sdn Bhd) for the exploration, development and production of petroleum in Block SK433, which covers some 3,100 sq km, and includes the AKW field.
Block 433 is the inaugural onshore petroleum contract granted by the Sarawak government to Petros in July 2021 under the Sarawak Oil Mining Ordinance 1958, alongside Block SK334 situated near Limbang and Lawas.
PEDSB had been studying Block SK433 for several years.
The contract is for 29 years, with phase one for an initial four years as well as an option to extend for another year.
Upon the successful outcome of phase one, the subsequent phase two involves development and production activities.
Onshore drilling at SK433 started in October 2023, following a successful appraisal campaign.
PEDSB, which is the operator of the AKW field, has experience in upstream field development and production.
Petra Energy is the sole operator of the Banang oilfield, offshore Terengganu, where the company resumed oil production in April 2026 after production activities were suspended in January 2025 for 15 months to facilitate the mandatory drydocking of the mobile offshore production unit.
According to Petra Energy group chief executive officer Datuk Anthony @ Firdauz Bujang, the build, own and operate contract was awarded by Petros in June 2025, marking the commencement of detailed project execution, planning and collaboration. Fabrication works for key production facility components were subsequently awarded, and the project progressed into the early construction phase last November.
Based on internal and external consultant estimates, the AKW field has proven and probable oil reserves of 0.2 million stock tank barrels (MMstb) and gas reserves of 64.31 billion standard cubic feet (Bscf).
Moreover, its best estimate contingent resources stand at 0.1 MMstb of oil and 0.23 Bscf of gas.
In the Petra Energy 2025 annual report, Anthony said production facilities are for two development wells in the AKW field.
Petra Energy has a 50% equity interest in the SK433 petroleum contract.
Meanwhile, Petra Energy’s wholly- owned subsidiary Petra Marine Sdn Bhd has entered into memorandums of agreement with AJR Oil & Gas Engineering Services Pvt Ltd and Beaufond Swissline FZ-LLC for the disposal of two accommodation work barges for US$7.75mil (RM31.68mil) and US$7.25mil (RM29.63mil), respectively.
The disposals are timely as they allow the group to monetise non-performing assets and crystalise the value of the vessels at reasonable prices, said Petra Energy.
The proceeds from the disposals will support the group’s working capital requirements.
