SapuraKencana Inks Deal to Sell Gas from Malaysia’s B15 Field to PETRONAS

August 6, 2016

Dateline 2016-06-27, Rigzone:

SapuraKencana Petroleum Berhad (SKPB) reported Monday that its upstream subsidiary SapuraKencana Energy Sarawak Inc. (SKE) has signed June 23 the SK310 Upstream Gas Sales Agreement for gas produced from the B15 field located offshore East Malaysia to national oil company Petroliam Nasional Berhad (PETRONAS).

Facilities for the B15 gas development comprise a central processing platform with a 22 mile (35 kilometer) gas evacuation pipeline to be tied into the existing infrastructure. The field, which was discovered in December 2010 and will deliver gas to the Malaysia Liquefied Natural Gas (MLNG) complex in Bintulu, Sarawak, is scheduled to commence production in the fourth quarter of 2017.

“I would like to thank PETRONAS and the SK310 JV (joint venture) partners for their efforts in getting the project to realization. The SK310 UGSA marks SKE’s first participation in a Gas Sales Agreement for East Malaysia,” Shahril Shamsuddin, president & Group CEO of SKPB, said in the press release.

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SapuraKencana’s gas venture gets off the ground

December 27, 2015

Dateline 2015-11-25 , The Edge:

LAST Wednesday, oil and gas outfit SapuraKencana Petroleum Bhd announced that it had received the green light from Petroliam Nasional Bhd (Petronas) for a field development plan (FDP) for the SK310 B15 gas project off Sarawak.

Shahril: We will have clear visibility of the cash flow once the development of these discoveries commences

The announcement, however, did not have the expected impact on the stock, which shed seven sen to close at RM2.19 last Thursday.

Naturally, SapuraKencana will not see any contribution from the development of the gas field in the near term, but it is likely to become a fresh recurring income source for the group in two years.

The share price had in fact rebounded from a historical low of RM1.47 recorded on Aug 25, gaining more than 50% — that is  until last Thursday — possibly buoyed by the impending news of the FDP.

President and CEO Tan Sri Shahril Shamsuddin tells The Edge: “This is a significant milestone as we will begin the monetisation of the seven gas discoveries we have to date off Sarawak. First gas is expected to flow in the final quarter of 2017 and we will see healthy cash contributions over the life of this development.

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