What is the significance of the first onshore drilling at Block SK433?

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The commencement of the first onshore drilling at Block SK433 signifies a pivotal moment for Sarawak's oil and gas sector, aiming to rejuvenate exploration and foster socio-economic development.

The initiation of onshore drilling activities at Block SK433 by Petroleum Sarawak Berhad (Petros) and Petra Energy Berhad represents the first instance of an onshore petroleum contract awarded by the Sarawak state government to Petros. This development is strategically aimed at revitalising exploration efforts and accelerating the commercialisation of discovered onshore oil and gas reserves. The project is also intended to contribute to Sarawak's socio-economic growth and align with the objectives outlined in the Post-Covid-19 Development Strategy 2030 (PCDS 2030).
Inaugural Onshore Petroleum Contract

This drilling campaign marks a significant milestone as it is the first onshore petroleum contract granted to Petros by the Sarawak state government. The contract was awarded in July 2021 under the Sarawak Oil Mining Ordinance 1958, signalling a renewed focus on domestic exploration and production capabilities.
Strategic Location and Potential

Block SK433 encompasses an area of approximately 3,100 square kilometres and is situated in the Miri-Marudi region of Sarawak. This area includes the Adong Kechil West discovery and is an extension of the Baram Delta, a region with a long history of oil production. The state government had previously issued two oil prospecting licences to Petros, covering Block SK433 and Block SK334.
Economic and Employment Impact

The natural gas produced from the Adong Kechil West Field is anticipated to be channelled to the Miri hub, supporting the development of a 400-megawatt gas turbines power plant slated for operation in 2027. Furthermore, the SK433 project prioritises local employment, with approximately 75% of the current workforce comprising Sarawakians, and this figure is expected to grow as operations expand. Petros, established in 2017, actively aims to create job opportunities and retain local talent within the oil and gas industry.

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What is the significance of the first onshore drilling at Block SK433?

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