Shell makes significant find of gas off Malaysia's Sabah

Shell makes significant find of gas off Malaysia's Sabah

KUALA LUMPUR (AFP): Dutch oil giant Shell has confirmed a significant find of natural gas off Malaysia's petroleum-rich eastern Sabah state and was planning wells to ascertain the volume of hydrocarbon reserves.

In its latest monthly bulletin released yesterday, Shell said the discovery was confirmed and was followed by a production test which showed flow rates of up to some 48 million cubic feet (1.44 million cubic meters).

Sabah Shell Petroleum Co. said it made the discovery in the Kebabangan exploration well, 100 kilometers (160 miles) west of Kota Kinabalu, Sabah's state capital, in a water depth of some 450 feet (about 150 meters).

"New appraisal wells will be drilled later on to ascertain the volume of hydrocarbon reserves," it said.

This recent success was the second after its 1988 discovery of hydrocarbon reserves in the Kinabalu well, located in the same acreage awarded to it under a 1987 contract by Petronas, Malaysia's national oil company.

Sabah Shell Petroleum and another group subsidiary, Sabah Shell Selatan Sdn. Bhd., each hold a 40 percent stake in the exploration of the new field.

"This discovery also gives up tremendous encouragement to continue with our exploration efforts," Sabah Shell Petroleum's chief geologist Hans Hazebroek said.

Current proven reserves of natural gas in Malaysia are estimated at 76.7 trillion cubic feet (2.31 trillion cubic meters), representing four times the size of the resource-rich country's oil reserves.