Overview of Block H Phase 1B Development

Thailand's national upstream company PTTEP is advancing the development of the Permai, Bemban, and Alum fields offshore Sabah, East Malaysia, as part of Phase 1B of its deepwater Block H project. These fields will be exploited using Petronas' PFLNG Dua floating liquefied natural gas vessel, which has a capacity of 1.5 million tonnes per annum and has been producing from the Rotan and Buluh fields on the same block since 2021.

Drilling Campaign and Contract Details

PTTEP is set to commence a development drilling campaign imminently for the three fields. The campaign will utilize Seadrill's sixth-generation drillship, West Capella, under a contract with an estimated duration of 440 days, plus priced options for three additional wells. The firm work scope has a contract value of approximately $157 million, including a $5 million mobilization fee. The drilling campaign is expected to complete by mid-September and will be supported by vessels such as the Malaysia-flagged Belait PSV 2 and the Liberia-flagged Go Michigan.

Subsea and Infrastructure Contracts

SLB OneSubsea, a joint venture backed by SLB, Aker Solutions, and Subsea7, secured a significant engineering, procurement, and construction contract in October 2023 to provide comprehensive subsea production systems for the Phase 1B project. Additionally, US contractor McDermott won a large engineering, procurement, construction, and installation contract for a carbon steel pipeline, along with the transportation and installation of key subsea umbilicals, risers, and flowlines components. Installation, hook-up, and commissioning of the subsea facilities are scheduled for 2027, with first gas expected before the end of that year.

Resource Estimates and Partners

Former operator Murphy Oil estimated combined reserves of the Rotan, Alum, Bemban, and Buluh fields at approximately 950 billion cubic feet of gas, with the subsequent Permai discovery touted as a 200-plus Bcf resource. The Block H production sharing contract also hosts further discoveries, including Dolfin, Bunga Lili, and Biris, which together contain estimated gross resources of more than 2 trillion cubic feet of gas. The current partners in the PSC are operator PTTEP, Petronas Carigali, and Pertamina.