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.