KUALA LUMPUR: Petroliam Nasional Bhd (Petronas) has announced a gas discovery from its Cengkih-1 exploration well in Block SK 320 in the Central Luconia Province, about 220 kilometres off the coast of Bintulu, Sarawak.
The exploration well was successfully drilled to a total depth of 1,680 metres in August 2022, hitting more than 110 metres of gas column in Miocene Cycle IV/V pinnacle carbonate reservoirs, firming up more gas resources within Block SK320.
In a statement, the company said Mubadala Development Company Oil and Gas Ltd operates the block with a 55 per cent participating interest in the production sharing contract (PSC).
Petronas Carigali Sdn Bhd holds 25 per cent, while Sarawak Shell Bhd holds the remaining 20 per cent.
Petronas senior president of Malaysia Petroleum Management Mohamed Firouz Asnan said the company is thrilled by the latest discovery as it builds on the solid exploration successes in the Central Luconia region.
"The discovery confirms the large potential of this proven carbonate play type in Central Luconia.
"The monetisation of this discovery can be expedited with a lower cost given the proximity to the many existing facilities, including that of Pegaga, which started production in March this year."
He added that this latest success was enabled by the close partnership between Petronas and its petroleum arrangement contractors in expanding the resource base to meet the rising demand for gas in Sarawak, including the Petronas LNG complex in Bintulu.