Serba Dinamik Annual Report 2019

100 2019 ANNUAL REPORT INDUSTRY IMPACT ON OUR BUSINESS SERBA DINAMIK HOLDINGS BERHAD Development of the oil and gas industry in Malaysia remained active despite the oil and gas price fluctuation. Some notable developments within Malaysia’s oil and gas industry in 2019 included the following: The E6 oilfield in offshore Sarawak commenced production in May 2019. The E6 project comprised the drilling of three 6,000 feet-long horizontal wells that chocks unwanted fluids to help promote oil production from the entire well. The discovery of gas at the Lang Lebah 1RDR2 in June 2019. This was the first exploration well in the Sarawak SK410B Project located in offshore Sarawak. The well encountered 252meters of net gas pay, indicating a multi-trillion cubic feet ("tcf") gas discovery and was tested in carbonate main target reservoir with a completion-constrained rate of 41.3 million standard cubic feet per day ("mmscfd") and 246 barrels per day ("bpd") of condensates. Completion of the Gumusut-Kakap Phase 2 Project in September 2016, a semi-floating production system located in offshore Sabah which involved the drilling of four additional subsea tied back to its semi-floating Production System ("GK-Semi FPS"). The four wells are expected to produce an additional 50,000 bpd of oil to the GK-Semi FPS. The Layang field in Block 10 offshore Sarawak commenced commercial oil production in December 2019. The field is expected to produce 3,000 bpd of oil and 10,000 barrels of oil equivalent ("boe") per day of natural gas combined. Pengerang Integrated Complex with oil refining capacity of 300,000 bpd and petrochemical product production capacity of 3.3 million tonnes per annum ("mtpa") has commenced operation in the fourth quarter of 2019. M A L AY S I A N O I L A N D G A S I N D U S T R Y