CSA to form basis of S’wak govt-Petronas discussions over recent gas discoveries

File photo for illustration purposes

KUCHING, Feb 24: The Sarawak government and Petroliam Nasional Berhad (Petronas) will hold discussions on the newly discovered two gas fields of Sarawak’s shores based on the Commercial Settlement Agreement (CSA).

The two new gas fields discovered are the Lang Lebah-2 exploration appraisal well in Block SK410B in Central Luconia and Dokong-1 in Block SK417 in Baram waters.

In a press statement today, the Chief Minister’s Office (CMO) said the Sarawak government has been duly notified by Petronas of the discoveries.


“The Sarawak government has been duly notified by Petronas on the two gas field finds offshore Sarawak namely, the Lang Lebah-2 exploration appraisal well in Block SK410B in the Central Luconia Province as announced a fortnight ago and another discovery as announced today in respect of Dokong-1 in Block SK417 off the coast of Sarawak.

“In this regard, further discussion will be held between Petronas and the state government based on the terms of the Commercial Settlement Agreement (CSA) that will bring about greater benefits to both Sarawak and Petronas,” said CMO.

Apart from CMO, Petronas had also in a press statement earlier today announced that the gas discovery from the Dokong-1 wildcat exploration well in Block SK417 Production Sharing Contract (PSC) off the coast of Baram.

Petronas said PTTEP HK Offshore Limited is the operator for Block SK417 PSC with 80 per cent participating interest while Petronas Carigali Sdn Bhd, a subsidiary of Petronas holds the remaining 20 per cent.

Petronas pointed out that the Dokong-1 wildcat exploration well was successfully drilled to a total depth of 3,810 metres in mid-January 2021.

The petroleum giant of Malaysia said this finding of contaminant-free gas in Dokong-1 not only revives Baram shallow clastic play but also proves the presence of more sweet gas opportunities within the area.

According to Petronas, the Dokong-1 discovery reinvigorates the entire exploration landscape of Baram, strengthening the role of the Baram gas supply network as part of the larger Sarawak gas system.

Meanwhile, on Feb 11, Petronas confirmed a gas discovery from the Lang Lebah-2 exploration appraisal well in Block SK410B Production Sharing Contract (PSC), located in the Central Luconia Province, about 80 kilometres off the coast of Sarawak, offshore Malaysia.

It said the Lang Lebah-2 exploration well was successfully drilled to a total depth of 4,320 metres in mid-January 2021 with over 600 metres of proven net gas pay.

The well was tested and flowed at 50 million cubic feet of gas per day with a significant amount of gas in place. This is an appraisal drilling to confirm the upside potential and to accelerate the development programme, Petronas added. — DayakDaily