MIRI, Oct 11 — State-owned oil company Petroleum Sarawak Berhad (Petros) and Sarawak-based Petra Energy Berhad today announced the commencement of their first onshore drilling at Block SK433 in Sarawak.

This marked a milestone of the inaugural onshore petroleum contract that was awarded by the state government to Petros in July 2021 under the Sarawak Oil Mining Ordinance 1958.

Block SK433 covers an area of approximately 3,100 square kilometres and is located in the Miri-Marudi area, covering northern Marudi and includes the Adong Kecil West discovery.

The block is an extension of the Baram Delta, which has been producing oil for decades.

Speaking at the officiating of the commencement Premier Tan Sri Abang Johari Openg said the state government had issued two oil prospecting licences to Petros for Block SK433 and Block SK334.

He said on June 21, 2021 that he had endorsed the signing of the Block SK433 petroleum contract between Petros and Petra.

"We are here today to celebrate the first oil drilling ceremony,” he said.

He said at SK334, Petros is wrapping up a joint technical study and "we are looking forward to the potential drilling exploration well in 2025.”

"As we take the first in resuming onshore oil and gas after decades of inactivity, we are firming our commitment to rejuvenate exploration offshore Sarawak and strive for early commercialisation of onshore oil and gas discoveries to spur socio-economic growth of Sarawak and bring us another step closer towards our goals under Post-Covid-19 Development Strategy 2030 (PCDS 2030,” he said.

Abang Johari hoped that the natural gas produced at Adong Kechil West Field would be supplied to the Miri hub as part of the Sarawak gas roadmap for the 400 megawatts gas turbines power plant that has commenced earthwork in Lutong, Miri.

He said it is on track to begin operation in 2027.

The SK433 project employs about 75 per cent of Sarawakians who are currently working at the drilling site and the number is expected to increase as operations pick up.

Block SK433 covers an area of approximately 3,100 square kilometres, is located in the Northern Region of Sarawak area and includes the discovered Adong Kechil West field.

Abang Johari said Petros has continued to play an active role in building its position and participating in both the upstream and downstream sectors of the oil and gas industry since its inception in 2017, in line with the state’s aspiration to create better job opportunities for local talents, while attracting and retaining Sarawakian talents and experts.