SapuraOMV Upstream has initiated gas production from the Jerun gas field in the SK 408 production sharing contract (PSC) offshore Malaysia.
The field, situated approximately 160km north-west of Bintulu, was discovered in 2014 and reached its final investment decision in March 2021.
SapuraOMV Upstream, a joint venture between Malaysia's Sapura Energy and Austria's OMV, is the operator of the SK 408 PSC and holds a 40% stake.
Other partners in the PSC include Malaysia’s national oil and gas company, Petronas, with a 30% stake and UK energy major Shell with the remaining 30% stake.
The Jerun A CPP is engineered to produce a maximum of 550mcf/d of gas.
At peak production, the field is also expected to yield 15,000 barrels per day of condensate.
The produced gas will be transported through a newly constructed 80km pipeline to the E11RB production hub, ultimately reaching the Petronas LNG Complex in Bintulu, Sarawak.
According to GlobalData, the Jerun conventional gas development will involve drilling around six wells and includes a fixed platform.
The project's production is expected to reach its zenith in 2030 and, based on current economic projections, continue until the field's economic limit in 2049.
Petronas senior vice-president of Malaysia Petroleum Management Datuk Bacho Pilong said: "Congratulations to SapuraOMV and their partners for achieving this milestone.
"Adding to the country’s energy portfolio, this project promises significant contributions towards sustaining Malaysia’s long-term gas supply. The unwavering support and cooperation from the Sarawak Government and local authorities have been instrumental in the success of this project."
The production commencement comes as SapuraOMV Upstream is in the process of being acquired by French oil and gas company TotalEnergies in two separate transactions totalling $1.6bn (€1.48bn).
