The Jerun Gas Field is an operational offshore gas and condensate field located in Block SK 408 off the coast of Malaysia.
The field was discovered in 2015 under the SK408 Production Sharing Contract (PSC). It commenced production in July 2024.
Jerun is operated by Malaysian oil and gas company SapuraOMV (40%) in partnership with local Shell subsidiary Sarawak Shell Berhad (SSB) (30%), and PETRONAS Carigali (PCSB) (30%).
TotalEnergies signed an agreement with Austrian multinational integrated oil, gas and petrochemical company OMV in January 2024 to acquire its 50% interest in SapuraOMV.
In April 2024, TotalEnergies signed another agreement with Sapura Upstream Assets (SUA) to acquire its remaining 50% stake in SapuraOMV for $530m. The agreement is expected to be closed in the second half of 2024.
On successful completion of both transactions, TotalEnergies would acquire 100% interest in SapuraOMV, becoming the operator of the field. SapuraOMV also holds 30% operated interest in block SK310, also located offshore Sarawak in Malaysia.
Jerun Gas Field Location
The Jerun Gas Field is located in Block SK 408, around 190km northwest of Miri and 160km northwest of Bintulu in the Malaysian state of Sarawak. Water depth in the region is around 87m.
The SK408 block covers a total area of 4,480km².
Discovery of Jerun Field
SapuraOMV Upstream has drilled a total of 13 exploration wells between 2014 and 2020. This led to the discovery of six commercial assets.
The Jerun Field was discovered in 2015. The Jerun-1 well, located approximately 5km north of the 2014 Bakong gas discovery, identified the asset.
The well was part of a three well-drilling campaign within Block SK408 PSC area. They targeted non-associated gas within the primary target Late Miocene Carbonate reservoirs.
Jerun-1 encountered a gross gas column of 800m in the primary target reservoir, based on the analysis of electric log, pressure, and sample data.
Among the other two wells, Jeremin-1 identified a 104m gross gas column while Putat-1 was confirmed as a dry hole.
The gas contains 7.1 mol% of CO2 and 50ppm of H2S. It has average Condensate to gas ratio (CGR) of 25 bbl/MMSCF and water gas ratio (WGR) of 2 bbl/MMSCF at BSTAB condition.
Jerun Field Development
The Jerun Gas Field infrastructure comprises Jerun A Central Processing Platform (CPP) and a gas export pipeline.
The Jerun A CPP comprises a 10,000-metric tonne (mt) jacket, and an approximately 15,000mt topside. It is supported by piles weighing 5,000mt.
The platform has a peak production capacity of up to 550 million cubic feet of gas per day (mmsfd) and 15,000 barrels per day (b/d) of condensate.
After the gas and condensate are dehydrated and metered at the platform, it is transported via the 30-inch 80km long carbon steel pipeline to the E11RB production hub. Condensate is spiked into the gas stream to enable comingled export.
From the SK Gas-operated E11RB production hub, the gas and condensate is delivered to the customers in Bintulu including Malaysian LNG.
In future, an Export Compression will be installed to extend the production life of the offshore field when reservoir pressure falls.
Jerun Field Contractors
In April 2021, Malaysia Marine and Heavy Engineering (MMHE), a wholly owned subsidiary of Malaysia Marine and Heavy Engineering Holdings Berhad (MHB), won the contract to deliver the CPP and export pipeline for the Jerun Field project.
The scope of works includes engineering, procurement, construction, transportation & installation, and hook-up & commissioning services (EPCIC). The contract for the central processing platform values around $243m.
OceanMight, an oil and gas fabricator based in Sarawak and owned by KKB Engineering, was awarded a subcontract by MMHE.
The scope of the contract included the provision of fabrication, engineering, supervision, manpower, and necessary equipment and tools for the delivery of CPP jacket.