KUALA LUMPUR (Sept 20): Petroliam Nasional Bhd (Petronas) has announced a new gas discovery from the Cengkih-1 exploration well in Block SK320 located in the Central Luconia Province, about 220 kilometres off the coast of Bintulu, Sarawak.

Block SK320 is operated by Mubadala Development Company Oil and Gas Ltd with a 55% participating interest, while Petronas' upstream unit Petronas Carigali Sdn Bhd and Sarawak Shell Bhd hold the remaining 25% and 20% respectively in the Production Sharing Contract (PSC).

“The Cengkih-1 exploration well was successfully drilled to a total depth of 1,680 metres in August 2022, hitting more than 110 metres gas column in Miocene Cycle IV/V pinnacle carbonate reservoirs, firming up more gas resources within Block SK320,” the national oil company said in a statement on Tuesday (Sept 20).

Petronas senior vice president of Malaysia Petroleum Management, Mohamed Firouz Asnan said the group is thrilled by the latest discovery in Cengkih-1, which builds on the string of exploration successes in the Central Luconia region.

“This discovery confirms the large potential of this proven carbonate play type in Central Luconia. The monetisation of this discovery can be expedited with lower cost, given the proximity to the many existing facilities, including that of Pegaga, which started production in March this year.

“The 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 (liquefied natural gas) complex in Bintulu,” he added.

In February last year, Petronas announced that its Lang Lebah-2 exploration appraisal well in Block SK410B PSC made a gas discovery in the Central Luconia Province, 80km off the coast of Sarawak.

Block SK410B is operated by PTTEP HK Offshore Ltd, together with KUFPEC Malaysia (SK-410B) Ltd and Petronas Carigali.