Thailand's PTT Exploration and Production Public Co Ltd (PTTEP) has announced that it has made a large gas discovery in block SK410B offshore Sarawak, Malaysia.
The discovery was made by PTTEP HK Offshore Ltd (Malaysia Branch), or PTTEP HKO, a fully-owned subsidiary of PTTEP at Lang Lebah-1RDR2, the first exploration well in the Sarawak SK410B Project located off Sarawak state on Borneo Island.
Wood Mackenzie senior analyst Huong Tra Ho said: "We estimate an indicative size of 2 trillion cubic feet, making this the 7th largest global discovery of the year. It is in the deeper, HP/HT reservoir of the basin, and looks potentially to have relatively 'clean' gas qualities and low impurity content."
Ho added: "We expect Lang Lebah to have a high chance of commercialisation as feedgas into the Malaysia LNG (MLNG) complex. The plant is in urgent need of new supply as existing sources have only met 85 per cent of its requirements in 2018."
The Sarawak SK410B block is located in shallow waters around 90 km offshore Sarawak, with an acreage of about 1,870 square km. PTTEP HKO is the operator of the block with a 42.5 per cent interest, Kuwait Foreign Petroleum Exploration Co has 42.5 per cent and PETRONAS Carigali has 15 per cent.
Ho noted: "It represents a big win for the Thai national oil company, which has been aggressively securing resources across Southeast Asia over the past year, particularly Malaysia. The news comes on the back of PTTEP's acquisition of Partex and Murphy Oil's Malaysia portfolio, which together make it the third largest upstream acquirer in 2019."