Page 8 - AsianOil Week 40 2022

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Shell announces FIDs for two

Malaysian deepwater projects

INVESTMENT OVER the last month, Shell subsidiaries have a long and proud history in Sarawak, and we
announced final investment decisions (FIDs) for look forward to contribute further to Sarawak
Shell's investments in two deepwater oil and gas development projects and Malaysia’s economic growth through invest-
the region follow a time in offshore Malaysia. ments in competitive and resilient projects.”
when IOC let capital In early October, Sabah Shell Petroleum First oil was delivered from GK Phase 3
spending in Asia slip. Company (SSPC) announced plans to proceed project just months ago on July 31. The pro-
with Phase 4 of the Gumusut-Kakap-Gerong- ject consists of two oil producer wells and two
gong-Jagus East (GKGJE) deepwater develop- water injection wells for enhanced oil recovery
ment project together with its partners, which (EOR). GK was Shell’s first deepwater project in
include Shell Sabah Selatan, ConocoPhillips Malaysia. Located in 1,200 metres of water, the
Sabah, Petronas Carigali, PTTEP Sabah Oil, and GK-Semi FPS started production in 2014.
PT Pertamina Malaysia Eksplorasi Produksi. Sarawak Shell Berhad (SSB) operates the Ros-
SSPC operates the Gumusut-Kakap mari-Marjoram gas project with an 80% inter-
semi-submersible floating production system, est, while Petronas Carigali holds the remaining
identified as the GK-Semi FPS, which is located 80%. The project is 220 km off the coast of Bin-
off the coast of Sabah. The GKGJE Phase 4 devel- tulu, Sawarak. While the project will produce
opment is a subsea tie-back to the GK-Semi FPS. sour gas, it is to be run with renewable energy
The project involves drilling four wells and tying created through 240 solar panels mounted to an
them back to the FPS. First oil is expected in late offshore platform. The onshore facilities, consist-
2024 and should boost production for the GK ing of a gas processing plant, will be connected
project by 25,000 barrels per day (bpd), accord- to the Sarawak electricity grid, which is mostly
ing to state-owned Petronas. powered by hydroelectricity plants. Diesel gen-
Shell’s investments in the region follow a time erators and batteries will serve as back-up.
when international oil companies (IOCs) had The 800mn cubic feet (22.7mn cubic metres)
allowed investment in Southeast Asia to slip as per day of gas produced at Rosmari-Majoram is
they concentrated on developing other resources viewed as strategic by the partners, as it will be
in other parts of the world. However, the war in used to sustain a steady gas supply to the Petro-
Ukraine and the subsequent jump in oil and gas nas LNG project. The field was first discovered
prices, as well as shortages in the energy markets, in 2014. According to a statement released by
have prompted some energy majors to refocus. Shell, the project comprises a remotely operated
“Taking FID for GKGJE Phase 4 reaffirms offshore platform and onshore gas plant, with
Shell’s continued commitment to deliver com- infrastructure that includes one of the longest
petitive and sustainable projects to meet the sour wet gas offshore pipelines in the world,
world’s energy demands,” Ivan Tan, chairman stretching more than 200 km. Gas production is
of Shell Malaysia and senior vice president for targeted to start in 2026.
Upstream Malaysia, said in a statement. The onshore gas plant is SSB’s largest onshore
In early September, when announcing that project in Sarawak since the construction of the
an FID had been taken to develop the Ros- Bintulu crude oil terminal and Bintulu integrated
mari-Marjoram gas project, Tan said: “Shell has facility in the late 1970s. ™

P8 www. NEWSBASE .com Week 40 10•October•2022