Potential in Ultra-deepwater Sabah, Malaysia – Can it be Realized?

January 18, 2023

Dateline 2022-10-17, SP Global:

Exploration and development activities in deepwater Sabah, Malaysia have increased since the first oil and gas discovery, Kamunsu East 1, in the late 1990s by Shell. More than 45% of discoveries in the area are found within the Upper Miocene Cycle V reservoirs of the Baram Delta and the Northwest Sabah Province.

The Kikeh field was the first deepwater development in Malaysia which was discovered in 2003 and commenced production in 2007. Six other fields have come onstream since then with the latest, the Rotan field by PTTEP, in early 2021. A variety of production systems have been used for the producing fields in deepwater Sabah. These production systems range from spar dry tree unit (DTU) (Kikeh field), semisubmersible floating production systems (Gumusut-Kakap field), tension leg platforms (TLP) (Malikai field) and floating liquified natural gas (FLNG) (Rotan and Buluh fields).


Petronas pipeline leak hit part of Malaysia’s LNG exports

January 10, 2023

Dateline 2022-10-10, Reuters:

Contracts to export Malaysian liquefied natural gas (LNG) that sources gas from the northern Borneo state of Sabah are under force majeure following a pipeline leak, trade sources said on Friday.

Malaysia LNG, majority owned by Petronas, declared force majeure on LNG supplies to its customers due to a leak on the Sabah-Sarawak Gas Pipeline on Sept. 21, a Mitsubishi Corp (8058.T) spokesperson said on Thursday.


Petronas pipeline leak hit part of Malaysia’s LNG exports -sources

January 6, 2023

Historical, don’t sell your shares.

Dateline 2022-10-07, Nasdaq:

Contracts to export Malaysian liquefied natural gas (LNG) that sources gas from the northern Borneo state of Sabah are under force majeure following a pipeline leak, trade sources said on Friday.

Malaysia LNG, majority owned by Petronas, declared force majeure on LNG supplies to its customers due to a leak on the Sabah-Sarawak Gas Pipeline on Sept. 21, a Mitsubishi Corp 8058.T spokesperson said on Thursday.

This came after Petronas declared force majeure on gas supplies to Malaysia LNG, in which Mitsubishi also owns a stake.


Gumusut-Kakap deepwater field achieves 1st oil production

January 5, 2023

Dateline 2022-10-03, The Malaysian Reserve:

THE Gumusut-Kakap (GK) Phase 3 deepwater development project on the east coast of Sabah achieved its first oil production on July 31, 2022, as two new oil producer wells and two water injector wells were drilled.

Petronas said once the project is fully completed in the first quarter of 2023 (1Q23), the four wells will add around 25,000 barrels per day to GK’s existing production capacity.

Sabah Shell Petroleum Co Ltd is the operator of the GK project, in partnership with Petronas Carigali Sdn Bhd, ConocoPhilips Sabah Ltd, PTT Exploration and Production Public Co Ltd, and PT Pertamina Malaysia Eksplorasi Produksi.


Malaysia’s Petronas, Sabah state launch masterplan for gas development

December 12, 2022

Dateline 2022-09-XX, Arab News:

Malaysia’s state oil firm Petronas and the resource-rich state of Sabah on Tuesday launched a masterplan to develop the state’s natural gas resources, including the construction a liquefied natural gas plant.

The Sabah Gas Masterplan is the result of a joint study between the state and Petronas, both parties said in a joint statement.

It entails the construction of an LNG plant with a capacity of 2 million tonnes per annum at the Sipitang Oil and Gas Industrial Park, which will provide opportunities for Sabah to expand its LNG distribution across the state, they said.


Petronas plans Phase 2 water injection support at South Furious offshore Sabah

November 9, 2022

Dateline 2022-08-25, Offshore:

Petronas has approved the South Furious 30 Water Flood Phase 2 project in the North Sabah production sharing contract offshore Malaysia, according to partner Hibiscus Energy.

This involves drilling of six water injectors and five oil infill wells at the South Furious 30 Field, the aims being to increase production and reserves recovery via pressure support from water injection and sweep into existing and new oil producers.


2 O&G firms yet to pay Sabah RM97mil in SST

November 7, 2022

Dateline 2022-08-18, FMT:

Two oil and gas firms have yet to pay the RM97 million in state sales and service tax (SST) on petroleum products owed to Sabah, says the state’s second finance minister Masidi Manjun.

According to The Borneo Post, the two firms are Repsol Oil and Gas Ltd and SEA Hibiscus Sdn Bhd. Masidi reportedly said there was no problem with the other oil and gas companies operating in Sabah as they had been paying the SST on time.

He added that Sabah would be able to rake in RM1.2 billion annually if all of the firms had paid the SST on time.


Sabah wants more young people in oil and gas industry, says CM

October 20, 2022

Dateline 2022-07-23, The Edge:

The Sabah government wants more young people in the oil and gas industry in line with efforts to develop the industry in the state, said Chief Minister Datuk Seri Hajiji Noor.

He said Sabah had recorded a historic achievement through the establishment of SMJ Sdn Bhd, which is a fully state-owned oil and gas company, following the signing of the commercial cooperation agreement (CCA) with Petronas last year.


Malaysian tax: Hibiscus takes action against Sabah government

August 15, 2022

Dateline 2022-06-08, Upstream Online:

Malaysian independent Hibiscus Petroleum said it has elected to stop paying the Sabah state government a tax levy that it previously paid “under protest”.

The state sales tax is levied by the Sabah government in relation to the sale of oil, produced from the Kinabalu oilfield, according to the terms of the Kinabalu oil production sharing contract, Hibiscus said.


Sabah won’t back down in talks over oil rights, says minister

April 27, 2022

He will bang tables? Okay….. if that floats your boat.

Dateline 2022-03-21, FMT:

Sabah local government and housing minister Masidi Manjun has said he would not back down on the issue of the state’s rights, including on oil and gas, in its negotiations with the federal government and Petronas.

Masidi, who is the head of the state’s negotiation team, said the terms in the talks were in line with the aspirations of the people.

“I’ll walk out of the negotiation room and bang tables if I am not satisfied,” he said in reply to a supplementary question from Shafie Apdal (Warisan-Senallang) at the state assembly today.