Sapura Energy surges 25% on Sarawak gas field development

(April 11): Shares in Sapura Energy Bhd rose as much as 25.2% or 13.5 sen in early trade today, after it announced it is moving ahead with the development of gas fields off the coast with its partners.

As at 4.15pm, 548.09 million shares were crossed between 54.5 sen and 67 sen, with Sapura Energy emerging as the most active counter on the local bourse. The stock was still up 21.5% or 11.5 sen at 65 sen, valuing it at RM3.86 billion.

In a filing with Bursa today, Sapura Energy said its wholly-owned Sapura Exploration and Production (Sarawak) Inc (Sapura E&P), Petronas Carigali Sdn Bhd and Sarawak Shell Bhd are proceeding with the development of the Gorek, Larak and Bakong gas fields off the coast of Sarawak as Phase 1 in the SK408 production sharing contract, after making a final investment decision (FID).

The FID follows the field development plan approval from Petroliam Nasional Bhd and concurrently, the signing of the key terms to the gas sales agreement for Phase 1 of the SK408 gas field development.

Sapura E&P is the development and production operator of the Larak and Bakong fields, while Sarawak Shell is the development and production operator of the Gorek field.

The fields will be developed as three separate wellhead platforms tied back to the existing Sarawak Shell operated F6 processing facility.

They will be Sapura E&P’s second major upstream gas development project in East Malaysia, after the successful development and commencement of production from the SK310 B15 gas field.


Source: The Edge

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