JX Nippon Oil & Gas Exploration revealed that its subsidiary JX Nippon Oil & Gas Exploration (Malaysia) has achieved commercial gas production from the Beryl Gas Field offshore Sarawak in Malaysia.
Located in the shallow zone in Block SK10, the Beryl Gas Field is estimated to have a peak production of around 140MMscf/d, which is equivalent to 23,000boed.
The gas produced from the offshore Malaysian field will be delivered via subsea pipelines to the MLNG Tiga liquefaction plant located in Bintulu, Sarawak. JXTG Nippon Oil & Energy, a subsidiary of the Japan-based JX Nippon, is one of the owners of MLNG Tiga liquefaction plant.
According to JX Nippon, the natural gas produced from the Beryl Gas Field will be sold after liquefaction as LNG to its customers including buyers in Japan.
The company, in a statement, said: “As per the Medium-Term Management Plan released in 2017, we will allocate our business resources preferentially to the regions, such as Southeast Asia, where we can exercise our strength, pursuing strategy of selection and concentration.
“We intend to maintain and strengthen our long-term good relationship in Malaysia and enhance our capacity to raise revenue through our E&P business activity as Operator.”
The Beryl Gas Field is located in the same area as the producing Helang gas field and Layang oil and gas field for which JX Nippon has been the operator.
According to the field development plan (FDP), JX Nippon had used existing facilities of Helang to develop the Beryl Gas Field economically and within a short duration of time.
While the Japanese firm owns 75% stake in Block SK10, Petronas Carigali holds the remaining 25% stake in the offshore concession.
In June 2017, JX Nippon reported that the Layang Field, which is also located in Block SK10, had started commercial production of gas. The Layang Field, which is located nearly 7km east of the Helang Gas Field, is estimated to have an initial production of around 12,000 boed of natural gas and condensate.
Like the Beryl Gas Field, natural gas produced from the Layang and Helang fields are supplied through subsea pipelines to the MLNG Tiga facility.