KUALA LUMPUR (April 11) : Sapura Energy Bhd's wholly-owned subsidiary Sapura Exploration and Production (Sarawak) Inc (Sapura E&P), Petronas Carigali Sdn Bhd and Sarawak Shell Bhd have taken the final investment decision (FID) to develop Sarawak's Gorek, Larak and Bakong gas fields. The FID follows Petronas' approval for the field development plan.

Sapura Energy said in a statement to Bursa Malaysia today that Sapura E&P, Petronas Carigali and Sarawak Shell will develop the Gorek, Larak and Bakong fields under phase one of the SK408 production sharing contract. Sapura Energy said the FID also follows the signing of the key terms to the gas sales agreement for phase one of the SK408 gas field development.

Sapura Energy president and group chief executive officer Tan Sri Shahril Shamsuddin said in the statement: "The development of the SK408 gas fields further strengthens Sapura Energy's position in Malaysia as a significant partner and supplier of natural gas to one of the world's largest LNG production facilities, the PETRONAS MLNG complex in Bintulu."

"The FID represents a critical milestone as we further progress towards unlocking the value of our gas fields thus, providing clear visibility of our long-term gas monetisation plans. With the recent extensive addition to our exploration acreage in Mexico and New Zealand, the group has been able to geographically diversify our E&P segment and put in place a well-balanced portfolio across exploration, development and production phases," Shahril said.

According to Sapura Energy's statement, 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.

Sapura Energy said the fields will be developed as three separate wellhead platforms.

"The fields under the SK408 gas field development project are part of the discoveries made by Sapura E&P in its 2014 drilling campaign. The SK408 gas fields 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," it said.

Today, Sapura Energy shares settled at 56.5 sen at 12:30pm for a market value of RM3.39 billion. The most-active stock across Bursa Malaysia saw some 152 million shares traded.