Sarawak explores the potential of a new oil field in Marudi

KUCHING, Oct 10: Sarawak sees the potential to explore more land-based oil reservoirs around Adong Kechil West, near Marudi, following current production of 800 barrels per day from a lake estimated to generate RM96 million annually based on current oil prices.

Sarawak's Prime Minister, His Highness Tan Sri Abang Johari Tun Openg said the area has the potential to contribute more oil production from land to the state.

"Oil production in Adong Kechil West near Marudi is 800 barrels per day equivalent to RM8 million per month based on current prices which are equivalent to RM96 million per year, from just one pond.

"We actually have many more potential lakes in the area", he said while addressing a parade and giant gathering at Sarawak State's 80th Anniversary Celebration on Padang Merdeka, here today.

In related developments, Petroleum Sarawak Berhad (PETROS) is expected to develop another reservoir by mid next year to supply gas to the Combined Gas Cycle Turbine (CCGT) Power Station in Miri.

Brother Johari who is also Sarawak's Minister of Energy and Environmental Sustainability said PETROS also plans to drill exploration lakes in Kuala Baram which have potential for stimulating gas production.

"PETROS is currently developing a 65 kilometre gas pipeline to channel gas from Kidurong to the Samalaju Industrial Zone near Bintulu.

"Kawasan Samalaju will have gas supply when the project is completed by the end of this year", he added.

According to him, Sarawak's Plan of Hala Tarju Gas enables the state's oil and gas resources to be channelled from production centers in Bintulu to other areas to stimulate more comprehensive economic growth.

Sarawak is also strengthening its energy infrastructure through the development of a liquefied natural gas (LNG) terminal at Tanjung Embang as part of the Kuching Low Carbon Hab, following an agreement between PETROS and Oslo-based partner Höegh Evi.

Moreover, the surplus of renewable energy, especially hydro power, continues to be exploited to attract investment in industries that require a large amount of clean energy supply at competitive prices. - TVS