Oil discovery good news, says Chin


MIRI: The discovery of new oil and gas fields is good news and it could boost economic activities and employment.

This was Minister of Energy, Green Technology and Water Datuk Seri Peter Chin Fah Kui’s said this yesterday to the news of the first onshore oil and gas discovery after 24 years at Adong Kecil West-1 Well, about 20km northeast of Miri town.

Petronas announced the discovery on Friday of the well in Block SK333 drilled by JX Nippon Oil & Gas Exploration (Onshore Sarawak) Ltd, the operator for Block SK333 together with joint venture partner Petronas Carigali Sdn Bhd.

“This is a discovery well, and it is within the framework of the ETP (economic transformation programme), including re-looking marginal fields, and the discovery of Guang North between Bintulu and Miri and Tukau East gas fields are among these.”

Chin said the Adong Kecil West 1 field could be the catalyst for oil and gas economic activities and its spin-offs.

This would spur logistic support activities in developing the fields, manpower procurement and other industries while giving the Miri oil and gas industry a shot in the arm.

Petronas said the well was drilled to a depth of 3,170 metres and encountered a total of approximately 349 metres of net hydrocarbon thickness, and two drill-stem tests achieved flow rates of about 440 barrels of crude oil per day and 11.5 million standard cubic feet of gas per day.

Technical assessments are currently being undertaken by the operator to determine the resource volume of the field.

Drilling results indicated that the deeper sections in the onshore area may hold additional upside potential for hydrocarbon accumulation.