News Oil & Gas

Petronas makes significant oil and gas discovery offshore Malaysia

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Malaysia’s national upstream company Petronas Carigali has made a significant oil and gas discovery with its Nahara wildcat offshore Sarawak, East Malaysia.

The shallow-water Nahara field is located on Block SK 306 in the Balingian province around 150 kilometres off the coast of Bintulu, Sarawak.

The successful Nahara-1 probe was drilled to a total depth of 2468 metres and encountered hydrocarbons in Late Oligocene to Middle Miocene horizons.

Petronas Carigali said it discovered light oil with minimal contaminants, which was confirmed during production testing.

However, the operator did not reveal the reserves potential, flow rates — actual or estimated — or give any details as to whether appraisal or development plans were on the horizon.

“We are excited with this discovery and its impact to the future exploration effort in the surrounding areas,” said Petronas vice president of exploration, Mohd Redhani Abdul Rahman, who added that Nahara-1 is a significant oil discovery and “a testament to the vast potential in Malaysia’s prolific basins, which remain highly prospective”.

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He added that the discovery also reinforces the company’s current exploration strategy “of renewing focus in its exploration efforts in Malaysia’s basins”.

Petronas Carigali operates offshore Block SK 306 and has 100% equity in the asset.

Operator on a roll

The company last year made at least three discoveries in Balingian province offshore Sarawak, with the Sirung-1 exploration well on Block SK 405B encountering a significant oil and gas column exceeding 100 metres in the Oligocene to Middle Miocene sandstone clastic reservoir and proving the presence of oil in the under-explored deeper play within the Balingian province.

Another of Petronas Carigali’s 2021 exploration successes in the offshore province was the Hadrah-1 discovery on Block SK 411, which hit gas within an approximate 200-metre thick sequence of high-quality sandstone and carbonate reservoirs.

Mohd Redhani Abdul Rahman’s predecessor, Emeliana Rice-Oxley, said at the time that the Hadrah-1 discovery “further proves the promising prospectivity… within the Balingian province”.

“The excellent quality of reservoirs encountered augurs the remaining potential in the surrounding areas, with [Petronas Caligari] well positioned to pursue the untapped similar plays in blocks SK 411 and SK 306,” she added.

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