REJUVENATING AND UNLOCKING SARAWAK’S ONSHORE HYDROCARBON POTENTIAL

Date: 20 July 2024

Maximising value from onshore oil and gas prospectivity is an important part of the overall oil and gas development and production in Sarawak. The steady progress of drilling at SK433 Adong Kechil West and subsequent progression into the development and first production by 2025, beckons further onshore opportunities to closely follow the same path. 

A vast area spanning ~124,000 sq km onshore Sarawak is largely under-explored and this provides PETROS an opportunity to carry out the necessary data enrichment program over the next five to ten years. Undoubtedly, the vastness and remoteness of the onshore area imposes logistical challenges to new data acquisition and future exploration activity while potentially being a costly endeavour. Fortunately, evolution of existing technology and potential new technology are being evaluated for better efficiency and lower costs.

The data enrichment program for onshore Sarawak has been kicked-off with the reprocessing of all 2D (approx. 7000 line km) and 3D seismic (182 sq km) since April 2024, starting with Block SK433.

• The reprocessing will be followed by new seismic data acquisition program after taking into consideration from results of enhanced/high-resolution future full tensor gravity (e-FTG) survey. The high-resolution e-FTG data acquisition is currently being studied for its applications in both areas with and without existing seismic and well coverages.
• Successful application of e-FTG is expected to unravel new opportunities and expected to significantly optimise seismic acquisition cost.
• Another focus is Block SK334, located near Limbang & Lawas in Northern Sarawak with total area spanning around 6,685 sq km (Figure 1). A total of 450 line km of 2D seismic data were acquired over Limbang area in 2016 while the rest of Block 334 acreages have no seismic data coverage. The block is covered by first generation of Full Tensor Gravity (FTG) data acquired in 2015.

Figure 1. Block SK344 Situation Map

PETROS will be conducting a blockwide de-risking activity in SK334 by reprocessing all the existing seismic data which is scheduled to be completed in Q1 2025. A feasibility study on the application of e-FTG in Block SK334 is also currently being assessed.

Upon completion of the feasibility study in Aug 2024, a full e-FTG survey over Block SK334 is envisaged in second half of 2025. It is necessary to acquire the e-FTG survey over the entire SK334 block in order to have a wider comprehensive dataset (full tensor, gravity, magnetic and LIDAR) which will be processed, interpreted and integrated with seismic and other geological data.  Given that e-FTG will provide high quality data with speed and wide coverage, the results will enable design and cost optimisation of future seismic acquisition plans.

PETROS has also recently completed the northern onshore Sarawak geological field work. The integration of the collected geological samples and analysis from the field data is part of our effort to improve the geological understanding of the petroleum system in SK334.

PETROS is confident that with the additional high-quality datasets gathered, we will possess far better geological understanding to mature a technically robust prospect to drill in SK334. This will then enable PETROS to offer Block SK334 for competitive bidding to all interested investors.

The results of the onshore Sarawak data enrichment programs are expected to greatly enhance prospectivity of acreages in Onshore Sarawak and provide larger attractions for more investors to participate in future Onshore exploration bid rounds. Other remaining blocks onshore Sarawak such as areas covering Oya, Mukah, Balingian, Bintulu, Tatau, Miri and Marudi regions are also part of PETROS’ comprehensive de-risking and upgrading plan. Further plans for the interior part of onshore Sarawak will be formulated and refined using the outcome of the works.