SK10

Location

The SK10 project is situated in Block SK10, offshore Sarawak, Malaysia. The exact coordinates are 4.786, 113.495 (WGS 84).

Project Details

Operator and Ownership

The project is operated by JX Nippon Oil & Gas Exploration (Malaysia) Limited. The ownership structure includes:

• JX Nippon Oil & Gas Exploration Corporation: 75.0%
• Petronas Carigali: 25.0% Additionally, other stakeholders involved in the project include INPEX Corporation (15.0%) and Mitsubishi Corporation (6.3%) through their interests in JX Nippon Oil & Gas Exploration (Malaysia) Limited.

Fields and Discoveries

The SK10 block encompasses several gas and oil fields, including:

• Helang Gas Field: Discovered in 1990 and started production in 2003.
• Layang Oil and Gas Field: Discovered in 1991. Gas production began in 2017, and oil production started in 2019.
• Beryl Gas Field: Production commenced in 2018.

Production and Reserves

• Gas Production: The project produced 4,206.57 million cubic meters of gas per year as of 2020. The remaining recoverable gas reserves were estimated at 17,277.36 million cubic meters as of 2023.
• Oil and Condensate Production: The project produced 3.49 million barrels of crude oil and condensate per year as of 2020. The remaining recoverable reserves of crude oil and condensate were estimated at 22.07 million barrels as of 2023.

LNG Supply Chain

Natural gas produced from the SK10 block is transported through subsea pipelines to the LNG plant in Bintulu, Sarawak. The LNG plant, owned by Malaysia LNG Tiga Sdn Bhd (in which ENEOS Group has a 10% stake), processes the gas into liquefied natural gas (LNG) for export to various countries, including Japan.

Production History and Future Plans

• Production Start: Gas production at the Helang field began in 2003. Subsequent fields like Beryl and Layang started production in 2018 and 2017, respectively.
• Current Status: The field is currently in production, with an expansion project, the Helang & Layang EOR, in the commissioning stage and expected to start in 2024.
• Production Forecast: Based on economic assumptions, production from the SK10 field is expected to continue until it reaches its economic limit in 2044. The field currently accounts for approximately 3% of Malaysia's daily gas output.

Contractors and Partners

Several contractors are involved in the SK10 project, including:

• Noble
• Amarinth
• Mowe Marine & Offshore.

Economic and Strategic Importance

The SK10 project plays a crucial role in supplying natural gas to Japan and other LNG-consuming countries. It contributes to the stable supply of energy in the region and supports the robust energy demand in Asia.

Additional Developments