Sarawak resumes onshore O&G drilling after 50 years

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Abang Johari (3rd right), flanked by Hamid on his left and Awang Tengah, places his palm on the pad to launch the first onshore drilling at the SK433 block. Photo by Margaret Ringgit

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BY JACINTHA JOLENE & MARGARET RINGGIT

MIRI: Onshore well drilling in Sarawak commenced yesterday after a 50-year hiatus, marking a milestone for oil and gas (O&G) exploration.

Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg officially launched the commencement of the drilling in a ceremony held at the Grand Old Lady, the site where the first oil well in Malaysia was drilled in 1910.

He said the rejuvenation of onshore O&G exploration in Sarawak would spur the state’s socio-economic growth to bring it another step closer towards the Post COVID-19 Development Strategy 2030 goals.

“As we take this step toward resuming onshore O&G activities after decades of inactivity, we are reaffirming our commitment to rejuvenate exploration onshore Sarawak and drive early commercialisation of onshore O&G discoveries,” Abang Johari said.

The drilling took place at Adong Kecil West field in Block SK433, which is an area of about 3,100-kilometre square awarded to Sarawak government-owned O&G company, PETROS, in July 2021.

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The operation is conducted jointly with another Sarawak company, Petra Energy Bhd.

Abang Johari said the natural gas produced from the Adong Kecil West field would be supplied to run a 400-megawatt gas turbine power plant, which is currently being constructed in Lutong and is scheduled to begin operations in 2027.  

Meanwhile, PETROS is wrapping up a joint technical study in another area identified as Block SK334, located onshore between Limbang and Lawas, two northmost districts in Sarawak.

“We are looking forward to a potential drilling of an exploration well (for Block SK334) in 2025,” Abang Johari added.

 “I also would like to congratulate Petros and Petra and I hope this marks the beginning for us to produce oil and gas by companies owned by Sarawakians, from Sarawak for Sarawak,” he said. 

Apart from the drilling at Adong Kecil West, Petros and PETRA would also be acquiring 100 line-km of a new 2D seismic and reprocessing 500 line-km of existing 2D seismic as well as completing the regional geological and geophysical studies to further improve the prospect of Block SK433. 

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Meanwhile, Petros and Petra in a joint media release, said the initiation of drilling at SK433 is testament to the team’s hard work, dedication and expertise in bringing the project to life and employs about 75 per cent of Sarawakians who are currently working at the drilling site, which is expected to increase as operations pick up. 

Block SK433 covers an area of approximately 3,100km located in the Northern Region of Sarawak and includes the Adong Kecil West field. 

Also present at the ceremony were Deputy Premiers Datuk Amar Awang Tengah Ali Hasan and Datuk Seri Dr Sim Kui Hian; Petros chairman Tan Sri Datuk Amar Hamid Bugo; Obyu Holdings founder and advisor Tan Sri Datuk Seri Bustari Yusuf; PETRA Energy Berhad executive director and Group chief executive officer Datuk Anthony Firdauz Bujang. 

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