SapuraOMV Upstream said Sept. 3 that gas production has started from the Bakong gas field offshore Malaysia.

The milestone, reached in June, means all fields in Phase 1 of the SK408 development are onstream. SapuraOMV’s Larak gas field started in December 2019, and the Shell-operated Gorek Field started in May 2020, SapuraOMV said in a news release. All three fields were discovered in 2014.

“With this achievement we continue to demonstrate to our stakeholders our commitment to safety and project delivery, despite the many challenges posed by the COVID-19 pandemic,” Tan Sri Dato’ Seri Shahril Shamsudin, chairman of SapuraOMV Upstream, said in the release. “This achievement further strengthens our presence in the existing market, propelling us to become one of the most significant gas producers in the country and in the region, which would further cement our position as a trusted and reliable oil and gas company.”

The development aims to commercialize the gas reserves from Gorek, Larak and Bakong fields to help meet Asia's growing gas demand, according to the release. SapuraOMV and its partners will supply gas from the fields to the Petronas LNG complex in Bintulu, Sarawak as part of a long-term agreement with Petronas.

SapuraOMV’s partners under SK408 production-sharing contract are Sarawak Shell Berhad (30%) and Petronas Carigali Sdn. Bhd (30%).