Sapura Energy Berhad announces that its wholly-owned subsidiary, Sapura Exploration and Production (Sarawak) Inc. (formerly known as SapuraKencana Energy Sarawak Inc.; “Sapura E&P”) and its partners, PETRONAS Carigali Sdn Bhd and Sarawak Shell Berhad, have taken Final Investment Decision (“FID”) to develop the Gorek, Larak and Bakong fields as phase 1 in the SK408 Production Sharing Contract.

The FID follows the Field Development Plan approval from Petroliam Nasional Berhad (“PETRONAS”) and concurrently, the signing of the key terms to the gas sales agreement for phase 1 of the SK408 gas field development.

“The development of the SK408 gas fields further strengthens Sapura Energy’s position in Malaysia as a significant partner and supplier of natural gas to one of the world's largest LNG production facilities, the PETRONAS MLNG complex in Bintulu,” said Tan Sri Dato’ Seri Shahril Shamsuddin, President and Group Chief Executive Officer, Sapura Energy Berhad.

The fields under the SK408 gas field development project are part of the discoveries made by Sapura E&P in its 2014 drilling campaign.

The fields will be developed as three separate wellhead platforms tied back to the existing processing facility and to the MLNG complex. The SK408 gas fields will be Sapura E&P's second major upstream gas development project in East Malaysia, after the successful development and commencement of production from the SK310 B15 gas field.

“The final investment decision represents a critical milestone as we further progress towards unlocking the value of our gas fields thus, providing clear visibility of our long-term gas monetisation plans. With the recent extensive addition to our exploration acreage in Mexico and New Zealand, the Group has been able to geographically diversify our E&P segment and put in place a well-balanced portfolio across exploration, development and production phases,” said Tan Sri Shahril.

Sapura E&P is the development and production operator of the Larak and Bakong fields while Sarawak Shell Berhad is the development and production operator of the Gorek field. Sapura E&P has working interest with partners PETRONAS Carigali Sdn Bhd and Sarawak Shell Berhad.