The gas supply deal signed by SapuraOMV and its partners with Petronas on Sept 6 will not only improve SapuraOMV’s cash flow visibility for the next 20 years, but also give a positive impact on parent company, Sapura Energy Bhd.

The company is planning at least 12 new drilling campaigns in the SK408 block, located within the productive gas region of Central Luconia, off Sarawak waters, with new discoveries still being made.

The gas will be supplied to Petronas’ liquefied natural gas (LNG) complex in Bintulu.

The SK408 oil and gas blocks under Phase 1 at present produces 400mil cu ft per day while production from new gas fields under second phase expected to start in 2023, will add around 600mmscf to the output.

Apart from SK408, SapuraOMV also has exploration interests in Mexico, Australia and New Zealand.

The LNG market is expected to remain robust in the coming years, underpinned by strong demand for cleaner power source.

Source: LinkedIn Azlan Abu Bakar