Shell Invests in Phase 4 of Deepwater Project in Malaysia

November 2022

Shell PLC announced its second investment in Malaysia’s oil and gas sector within a month through its local unit, Sabah Shell Petroleum Co, in the phase 4 of the Gumusut-Kakap-Geronggong-Jagus East (GKGJE) deepwater offshore development project. Shell will be joining with key partners such as Petronas in the project as they aim to revive oil and gas output.

The GKGJE phase 4 development is a subsea tie-back project that is anticipated to be produced in late 2024. Shell’s partners in the GKGJE project include ConocoPhillips Sabah Ltd., PETRONAS Carigali Sdn Bhd, PTTEP Sabah Oil Limited, PT Pertamina Malaysia Eksplorasi Produksi, and others. The GKGJE project will boost Kimanis crude production, Malaysia’s premier export grade, which has been in decline due to a lack of investment and technical issues.

This is Shell’s second deepwater project in Malaysia within a month, followed by Shell’s announcement in September 2022 with Petronas to develop the Rosmari-Marjoram gas fields off the coast of Bintulu in Sarawak. The project intends to produce 800 million standard cubic feet of gas per day, with gas production expected to start in 2026. Additionally, Petronas has achieved its first oil production on July 31 at the Gumusut-Kakap (GK) deepwater field under the phase 3 project. Two new oil producer wells and two water injector wells were drilled at the GK field. The four wells will boost GK’s current production capacity by about 25,000 barrels per day once they are fully operational in the first quarter of 2023.

(Sources: The Star; The Edge Markets; Offshore-energy)

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