Sarawak Revives Onshore Oil and Gas Industry with First Oil Production

The state of Sarawak in Malaysia has revived its onshore oil and gas industry after nearly 50 years, with Petroleum Sarawak Berhad (PETROS) announcing the successful commencement of first oil production from the Adong Kechil West (AKW) Early Production System (EPS) in Block SK433.

The milestone builds on appraisal-development well drilling carried out at AKW in 2023 and reflects a Sarawak-led effort to rejuvenate and develop the state's onshore petroleum resources, despite the technical complexities of onshore reservoirs.

PETROS' Senior Vice-President for Sarawak Resource Management, Datuk Abang Arabi Abang Narudin, emphasized that the achievement is about more than just a project milestone. 'We are not just celebrating a successful project milestone, but the strength of the partnership that made it happen,' he said.

The AKW EPS allows for early production while generating valuable reservoir and operational insights critical to future field development. It is expected to produce up to approximately 800 barrels of oil per day.