KUALA LUMPUR (July 27): Petra Energy Bhd (KL:PENERGY) said the production rate at the Adong Kechil West (AKW) onshore oil well in Miri will be progressively optimised after achieving first oil earlier this month.
This could be expected as the facilities continue to stabilise and operational performance improves, Petra Energy said in a filing.
The well is located in Block SK433, onshore Miri, Sarawak, where Petra Energy holds a 50% participating interest.
Petra Energy said its wholly owned subsidiary Petra Energy Development Sdn Bhd successfully commissioned the AKW oil well and achieved first oil on July 18.
Block SK433 is operated under a petroleum contract involving Petra Energy, Petroleum Sarawak Exploration & Production Sdn Bhd (PSEP) and Petroleum Sarawak Bhd (PETROS) for the exploration, development and production of petroleum resources, with a tenure of up to 2050. Petra Energy holds a 50% participating interest in the block.
Last week, in revealing the project milestone, Sarawak Premier Tan Sri Abang Johari Tun Openg reportedly said that AKW is producing about 800 barrels of oil per day, or 24,000 barrels per month.
The latest development marking the return of onshore oil production in Sarawak after more than 50 years, the premier reportedly said.
Petra Energy also operates the Banang Late Life Asset Production Sharing Contract offshore of Terengganu.
Petra Energy’s shares closed 1.5 sen or 2% lower at 74.5 sen on Monday, giving the company a market capitalisation of RM239.7 million.