Project Profile
Value: US$2 billion
Location: Offshore Sarawak
Water Depth: 80 metres
Start-up Year: 2Q 2013
Discovered in 1970, K5 is a sour gas field with up to 70% carbon dioxide content. It is located approximately 230 km from Bintulu in water depth of 80 metres. Successful development of — and eventual production from — such a field requires extensive study and research, and if the study finds it viable, K5 will be the first gas field with more than 50% carbon dioxide content to be developed in Malaysia. Petronas and Total have now signed a heads of agreement to jointly study its development and production despite these unattractive conditions. Therefore the goal for Petronas and Total is to explore the possibility of developing the field in ways that are technically, commercially and environmentally viable in using the CCS technologies. The implementation of this agreement starts immediately and take 15 months for completion. Treated gas will be sent to Bintulu LNG facility, while carbon dioxide will be re-exported offshore for injection into a mature oilfield to enhance recovery rates.
Petronas has floated a tender for a parallel conceptual study to be carried out on the multi-billion dollar K5 high carbon dioxide gas development that is being carried out jointly with Total off Sarawak. Aker Solutions, Ranhill Worley, Technip and Wood Group Mustang were invited to submit bids before the end of 2012 for a conceptual study on the offshore development. The contract is expected to be awarded 1Q 2013.
Operators:
Petronas
Total
Contractors:
Technip: Conceptual study