SapuraOMV chairman Tan Sri Shahril Shamsuddin said the agreement further strengthened its position as a significant supplier of natural gas in Malaysia.

KUALA LUMPUR: SapuraOMV Upstream and its two partners Petronas Carigali Sdn Bhd and Sarawak Shell Bhd will supply gas produced from three field to Petroliam Nasional Bhd (Petronas).

The company, in a statement today, said SapuraOMV Upstream (Sarawak) Inc and the two companies had signed the full-term upstream gas sales agreement with Petronas for the Gorek, Larak and Bakong fields under the first development phase of the SK408 production sharing contract.

SapuraOMV is a joint venture between SAPURA ENERGY BHD and Austria’s OMV Aktiengesellschaft (OMV AG).

Under the agreement, gas produced from the three fields will be supplied to the Petronas liquefied natural gas (LNG) Complex in Bintulu.

SapuraOMV chairman Tan Sri Shahril Shamsuddin said the agreement further strengthened its position as a significant supplier of natural gas in Malaysia.

The agreement is another significant step in unlocking the value of our gas assets, he said.

The SK408 development project is expected to deliver first gas in the fourth quarter of 2019.

“The added volume from Gorek, Larak and Bakong is part of our growth strategy to realise our vision of becoming one of the largest independent oil and gas companies in the region”, said Shahril, who is also president and group CEO of Sapura Energy Bhd.

The Gorek, Larak and Bakong fields are part of the discoveries made by SapuraOMV during its 2014 drilling campaign and are being developed as three separate wellhead platforms for onward sales to the Petronas LNG Complex.

SapuraOMV is the operator for the Larak and Bakong fields while Sarawak Shell Bhd is the operator for the Gorek field.

The SK408 gas fields will be SapuraOMV’s second major upstream gas development project in East Malaysia. The company also holds participating interest in four production blocks in Peninsular Malaysia.

SapuraOMV Upstream is the joint venture between Sapura Energy and OMV Exploration & Production GmbH. SapuraOMV Upstream is an independent entity, distinct from its shareholder, Sapura Energy.