Petroliam Nasional (Petronas) has approved SapuraKencana Energy’s (SKE) field development plan (FDP) for the SK310 B15 gas field project in offshore east Malaysia.

This is the company’s first upstream gas development project in the country.

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With receipt of approval, the company will now begin the project’s development phase. It is targeting initial gas delivery for the fourth quarter of 2017.

"We will continue to pursue future gas development projects from our other successful gas discoveries in Malaysia, which is part of SKE’s portfolio today."

SapuraKencana president and group CEO Tan Sri Shahril Shamsuddin said in a statement: "We will continue to pursue future gas development projects from our other successful gas discoveries in Malaysia, which is part of SKE’s portfolio today."

Discovered in December 2010, the B15 field is set to produce 100 million standard cubic feet per day of hydrocarbon gas for the Petronas’s LNG complex located in Bintulu, Sarawak.

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The B15 field development will consist of a central processing platform with a 35km gas evacuation pipeline that would be tied into existing infrastructure.

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SapuraKencana Energy operates the SK310 production sharing contract (PSC) through SapuraKencana Energy Sarawak and holds a 30% participating interest in it.

Remaining partners are Petronas Carigali (40%) and Mitsubishi’s subsidiary Diamond Energy Sarawak (30%).

Oilfield services company SapuraKencana Petroleum was formed through a merger between SapuraCrest and Kencana in May 2012 and operates in more than 20 countries including Malaysia, Brazil, US, Western Africa and the Middle East.