SapuraOMV Upstream announced first production following the start-up at the end of December from its Larak gas field under the SK408 Production Sharing Contract (PSC), which was delivered within budget. The SK408 gas fields are part of discoveries made by SapuraOMV Upstream in a drilling campaign in 2014. The fields are tied back into an existing processing facility and gas is transported through existing pipelines for onward gas processing at PETRONAS LNG complex in Bintulu.
“This achievement will strengthen our presence in the existing market, propelling us to become one of the most significant gas producer in the country and in the region”, said SapuraOMV Chairman Tan Sri Dato’ Seri Shahril Shamsuddin. “This will further cement our position as a trusted and reliable oil and gas company.”
The development of SK408 aims to commercialize gas reserves from the Gorek, Larak and Bakong fields, which will help meet the growing gas demand in Asia.
„This production start is a positive signal and demonstrates OMV’s commitment to the Asia-Pacific hub. It shows once more the strengthening of the gas focus in our production portfolio”, said Johann Pleininger, Executive Board Member responsible for Upstream and Deputy Chairman of OMV.
The SK408 development is SapuraOMV’s second major upstream gas development project in East Malaysia, following the successful development and commencement of production from the SK310 B15 gas field. Following the full ramp-up of the first phase of SK408, comprising the Gorek, Larak and Bakong fields, SapuraOMV’s production is expected increase to more than 30 kboe/d, with the majority being gas.
SapuraOMV’s partners under SK408 PSC are Sarawak Shell Berhad (30%) and PETRONAS Carigali Sdn. Bhd (30%).
SapuraOMV Upstream, headquartered in Kuala Lumpur, is a strategic partnership between Sapura Energy Berhad and OMV Exploration & Production GmbH, a subsidiary of Austria’s OMV Aktiengesellschaft.
SapuraOMV Upstream operates internationally and has a strong portfolio of oil and gas assets in Malaysia as well as exploration interests in Mexico, Australia and New Zealand. The partnership has identified Malaysia as its hub to expand into Asia Pacific, and its combined strengths and expertise will pave the way for the joint venture to become a leading independent oil and gas company.
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OMV produces and markets oil and gas, innovative energy and high-end petrochemical solutions – in a responsible way. With Group sales of EUR 23 bn and a workforce of around 20,200 employees in 2018, OMV Aktiengesellschaft is one of Austria’s largest listed industrial companies. In Upstream, OMV has a strong base in Romania and Austria and a balanced international portfolio, with the North Sea, the Middle East & Africa, Russia and Asia-Pacific as further core regions. 2018 daily production stood at approximately 427,000 boe/d. In Downstream, OMV operates three refineries with a total annual processing capacity of 17.8 mn tons and about 2,100 filling stations in ten countries. OMV runs gas storage facilities in Austria and Germany; its subsidiary Gas Connect Austria GmbH operates a gas pipeline network in Austria. In 2018, gas sales volumes amounted to around 114 TWh. Sustainability is an integral part of the corporate strategy. OMV is set to invest EUR 500 mn in innovative energy solutions by 2025.