By Karen Bong
KUCHING, Oct 11: Petroleum Sarawak Berhad (Petros) and Petra Energy Berhad (Petra) has commenced their inaugural onshore drilling at the SK433 block, which includes the discovered Adong Kechil West field in Miri today, marking a momentous milestone in the resumption of onshore oil and gas activities after 113 years since the initial oil discovery in Canada Hill’s Oil Well No. 1.
Officiating the historic event held at Miri’s first oil well site, popularly known at The Grand Old Lady in Canada Hill, Premier of Sarawak Datuk Patinggi Tan Sri Abang Johari Tun Openg reaffirmed the Sarawak government’s commitment to reinvigorate onshore exploration in the region after decades of inactivity.
“And to drive early commercialisation of onshore oil and gas discoveries to spur socio-economic growth of Sarawak and bring us another step closer towards our goals under Post-Covid-19 Development Strategy (PCDS).
“I hope this marks the beginning of Sarawak’s very own venture into oil and gas production—by Sarawak, for Sarawak,” he said.
Abang Johari highlighted that the natural gas produced from Adong Kechil West field will be supplied to Miri Hub, as part of Sarawak Gas Roadmap (SGR), catering to the 400 megawatt combined-cycle gas turbine power plant currently undergoing construction in Lutong.
“It (the plant) is on track to begin operations in 2027,” he disclosed while congratulating Petros for its accomplishments.
Apart from drilling two appraisal-cum-development wells at Adong Kechil West, Abang Johari emphasised that Petros and Petra will also be acquiring 100 line kilometres of new 2D seismic and reprocessing 500 line kilometres of existing 2D seismic, as well as completing the regional geological and geophysical studies to futher improve the prospective of Block SK433.
“As for Block SK334, Petros is wrapping up a joint-technical study, and we are looking forward to the potential drilling of an exploration well in 2025,” he shared.
The Block SK433 project is the outcome of the inaugural Onshore Petroleum Contract awarded in July 2021 to Petros under the Sarawak Oil Mining Ordinance 1958 (OMO 1958), alongside Block SK334 located near Limbang and Lawas.
Abang Johari reiterated Sarawak’s full rights under OMO 1958 to manage, regulate and exploit mineral resources, particularly oil and gas, within Sarawak’s territory.
He emphasised the necessity for the Petroleum Development Act (PDA1974) to coexist with OMO 1958, which resulted in the commercial agreement between Petroliam Nasional Berhad (Petronas) and the Sarawak government, including Sarawak’s stake in the upstream sector.
“With that and given the onshore drilling is occurring on Sarawak’s land, it must be executed by Sarawakians,” he emphasised.
Block SK433, covering an area of approximately 3,100 square kilometres, is located in the Northern Region of Sarawak and includes the discovered Adong Kechil West field.
Deputy Premiers Datuk Amar Awang Tengah Ali Hasan and Dato Sri Dr Sim Kui Hian; Deputy Minister of Tourism Dato Sebastian Ting; Petros chairman Tan Sri Dr Hamid Bugo; Petra executive director and Group chief executive officer (CEO) Dato Anthony Firdauz Bujang; and OBYU Holdings founder and advisor Tan Sri Bustari Yusuf were among those present. — DayakDaily
