KUALA LUMPUR (Reuters) - A joint venture between Malaysia’s Sapura Energy and Austrian energy group OMV will achieve first production at an East Malaysian gas field in the fourth quarter of the year, the business said on Friday.
SapuraOMV, the joint venture, holds a 40 percent stake in the SK408 block, while a unit of Malaysian state energy company Petronas and a subsidiary of Shell hold 30 percent each.
Peak production from the block will be achieved by 2023, SapuraOMV’s chief executive, Muhammad Zamri Jusof, told reporters.
Zamri also said the three partners developing SK408 have signed a long-term gas sales agreement with Petronas.
SK408 will supply 400 million cubic feet of gas per day to the Petronas LNG complex in Bintulu, East Malaysia, at the end of the first phase of development, Zamri said.
OMV agreed to establish a joint venture with Sapura last year, paying $540 million for a 50% of the Malaysian company’s exploration assets.
Reporting by A. Ananthalakshmi and Liz Lee; Editing by David Goodman