KUALA LUMPUR (Feb 16): Petroliam Nasional Bhd (Petronas) has confirmed its first gas production from the Rotan and Buluh fields in Block H, off the coast of Sabah, on Feb 6.

Block H is operated by PTTEP Sabah Oil Ltd, a subsidiary of PTT Exploration and Production Public Company Ltd (PTTEP), in partnership with PT Pertamina Malaysia Eksplorasi Produksi and Petronas Carigali Sdn Bhd, a Petronas subsidiary.

In a statement today, Petronas said the gas production came from a water depth of more than 1,100 metres and marks another significant milestone in Malaysia’s upstream sector, as it is the first deepwater gas field with a target production capacity of 270 million standard cubic feet per day.

It said the gas was received by Petronas’ second Floating Liquefied Natural Gas (FLNG), the PFLNG DUA facility, for the LNG export market. Production from Block H joins the ranks of existing production from three deepwater blocks offshore Malaysia.

“The gas production reflects a strong collaboration between Petronas and the investors, as both parties bring together expertise and technologies to monetise stranded deepwater gas fields through the evacuation of gas via PFLNG DUA which is operated by Petronas Floating LNG Ltd,” said Petronas senior vice president of Malaysia Petroleum Management Mohamed Firouz Asnan.

“Upon expected commercial delivery of its first LNG cargo by the middle of March 2021, Petronas will become the first global energy company to own and operate two floating LNG facilities.  In addition, the strong support from the Sabah State Government also plays a significant role in realising this achievement,” he added.

 Petronas added that four additional deepwater blocks are being offered in the upcoming Malaysia Bid Round 2021 scheduled on Feb 26. "Petronas welcomes further investment to unlock deepwater potential in realising the vision to make Malaysia the deepwater hub in South East Asia."