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Malaysian projects on radar for go-ahead 

May 3, 2018 | Singapore | OSEA2018 Industry Insights

 

Malaysian projects on radar for go-ahead

Two large schemes in construction phase and more awaiting sanction

Malaysia has seen two major offshore gas field developments proceed to final investment decisions this year, while two other large projects are in the construction phase and several others are in the pre-sanction phase.

In March, Mubadala Petroleum sanctioned its maiden field development in Malaysia, the US$1 billion-plus Pegaga gas project in Block SK 320 off Sarawak.

The development concept comprises a central processing platform designed for gas throughput of 550 million cubic feet per day of gas plus condensate.

A 130-kilometre subsea pipeline will carry the gas to a third-party-owned riser platform called SKR-D, and then on to the Malaysia liquefied natural gas facility in Bintulu.

This year’s second sanctioned project was the initial phase of gas fields within Block SK408 off Sarawak, operated by Sapura Exploration & Production.

The Gorek, Larak and Bakong fields will be developed via three wellhead platforms and the rejuvenation of Shell’s nearby F6 platform. Gas production will also be fed on to the Bintulu LNG complex.

A third major project due to begin construction this year is Petronas’ Bokor phase three enhanced oil recovery development off Sarawak.

Bokor is one of a series of fields being developed as part of a wide-ranging Enhanced Oil Recovery Centre (EORC) campaign in the Baram Delta production sharing contract and the North Sabah PSC.

Murphy Oil, meanwhile, recently awarded service contracts for the deep-water Rotan gas project off Sabah.

Rotan is the feedstock gas source for Petronas’ second floating LNG vessel, which is under construction at Samsung Heavy Industries and targeting start up in 2020.

Pre-sanction phase

Several more field developments are in the pre-sanction phase including the Petronas-operated K5 and Kasawari gas projects, the Shell-led Limbayong oil and gas field, and the JX Nippon-operated Bestari oil discovery.

K5 is the most advanced, and has been subjected to years of engineering work as Petronas’ first major development of high carbon dioxide gas.

Kasawari is also high in CO2 and likewise has been the focus of exhaustive study work.

For Limbayong and Bestari, it is understood development options are being examined.

In Petronas’ Activity Outlook for 2018-2020, the national oil company predicted around 20 new greenfield development projects over the three-year period, all of which would require new production facilities.

Of these 20, around 30% would be to exploit oil, with the majority being gas projects. In tandem, the outlook envisaged 30 brownfield projects — in other words, expansions of existing fields — over the three years, with the majority being to boost oil output, but only 10% would require new production facilities. Petronas said the focus of all Malaysian operators will be on minimising the construction of large offshore processing facilities.

“A modest outlook can be expected for (for central processing platforms), as cost competitiveness drives development projects to opt for (wellhead platform) tie-ins to existing nearby facilities, instead of building new CPPs,” the company said.

Over the next three years, Petronas forecasts that between 16 and 23 wellhead platforms might be required. Up to four central processing platforms could be ordered.

One CPP has been ordered this year for Pegaga. Two or three could be contracted in 2019 and a further such facility — a structure with a 15,000-tonne jacket supporting 23,000 tonnes of topsides — in 2020.

In addition, one large 20,000-tonne mobile offshore production unit is expected to be ordered next year, most likely for the K5 development.

Two floating production, storage and offloading vessels could be ordered next year.

 

This article was originally published on upstreamonline.com