Saturday, October 31

Shell completes Gumusut-Kakap Phase 2

0

At peak production, the four wells will add 50,000 barrels of oil equivalent per day to the GK-Semi FPS, sustaining its rated production capacity of 165,000 barrels per day.

KUCHING: Sabah Shell Petroleum Company Ltd, the operator of the Gumusut-Kakap (GK) semi Floating Production System located offshore Sabah, announced the completion of its GK Phase 2 project, which involved the drilling of four additional subsea wells tied back to its semi Floating Production System (GK-Semi FPS).

At peak production, the four wells will add 50,000 barrels of oil equivalent per day to the GK-Semi FPS, sustaining its rated production capacity of 165,000 barrels per day.

Located in water depths of 1,200 meters, the GK-Semi FPS was Shell’s first Deepwater development in Malaysia, starting production in 2014.

“I would like to congratulate the team for yet another successful delivery of an important project for us both in Malaysia and globally,” said Shell Malaysia vice president of upstream, Simon Durkin.

“Shell has been a pioneer in Malaysia’s exploration and production sector for more than a century and a global leader in deep-water exploration and production for more than 40 years.

“We are proud of our continued investment in Malaysia and utilising our global and local expertise to ensure the long-term sustainability of Malaysia’s energy resources,” he added.

In addition to its timely completion and excellent safety performance, the GK Phase 2 project has realised cost savings of more than 35 per cent since taking final investment decision in the final quarter of 2017. This has been achieved through competitive scoping and efficient project execution.

The Gumusut-Kakap project is a joint venture between Shell (29 per cent, operator), ConocoPhillips (29 per cent), Petronas Carigali Sdn Bhd (16.8 per cent), PTTEP Sabah Oil Ltd (6.4 per cent), Pertamina (2.7 per cent) and others.

Deep Water is one of Shell’s Core Upstream themes, contributing strong cash generation for the Company. Shell’s global deep-water business has a strong funnel of development and exploration opportunities in Brazil, the US, Mexico, Nigeria, Malaysia, Mauritania, and the Western Black Sea.