SK Petro secures Field Development Plan approval from Petronas

by **Cals** Thu 05 Nov 2015, 02:14

SK Petro secures Field Development Plan approval from Petronas

By Gho Chee Yuan / theedgemarkets.com | November 4, 2015 : 7:01 PM MYT

KUALA LUMPUR (Nov 4): [size=16]SapuraKencana Petroleum Bhd ([You must be registered and logged in to see this image.] Valuation: 0.80, Fundamental: 0.65)'s (SK Petro) unit, SapuraKencana Energy Inc (SKE), has secured a Field Development Plan (FDP) approval from Petroliam Nasional Bhd (Petronas) for the SK310 B15 gas field development project in East Malaysia.

In a filing with Bursa Malaysia today, the oil and gas service provider and operator said with this approval, SKE will commence the development phase for the project and the first gas delivery is targeted for the fourth quarter of 2017 (4Q17).

According to the filing, the B15 field which was discovered in December 2010, is located within the SK310 Production Sharing Contract (PSC) area, offshore East Malaysia.

The development will comprise a central processing platform, with a 35-km gas evacuation pipeline to be tied into the existing infrastructure, SK Petro said.

According to the group, the B15 field is expected to produce 100 million standard cubic feet per day (MMscfd) of hydrocarbon gas for Petronas’ liquefied natural gas (LNG) complex in Bintulu, Sarawak.

SKE, via SapuraKencana Energy Sarawak Inc, is the operator of the SK310 PSC, with a 30% participating interest. The remaining interest or partners are Petronas Carigali Sdn Bhd at 40% and Diamond Energy Sarawak Sdn Bhd, a subsidiary of Mitsubishi Corporation at 30%.

Shares in SK Petro went up one sen or 4.63% to close at its two month high of RM2.26 today, for a market capitalisation of RM13.48 billion.

(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)
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