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Shell Malaysia Upstream 110 years

Shell Malaysia Upstream History

Discover the story of Shell Malaysia Upstream from its early humble beginnings in a small fishing village, to its present day as one of the largest multi-national oil and gas explorers offshore Sarawak and Sabah.

Timeline of Shell Malaysia upstream

1910s - The Beginning

Miri occupies a very special place in the history of Malaysia - it was on top of Canada Hill that the first oil well was drilled by Shell in 1910. This laid the foundation for our national petroleum industry, which would help to fuel the nation’s socio-economic development and propel Miri and its people from a sleeping village into the city of today.

The First Oil Well in Malaysia

Drilled By Cable Tool Method
Spudded - 10 August 1910
Completed - 22 December 1910
Original Depth - 452 Feet
Last Production Depth- 1096 Feet
Abandoned - 31 October 1972
Estimated Total Production - 660,000 Barrels
Last Production Rate - 7 Barrels Per Day

Total No. of Wells In Miri Field - 624
Total Production In Miri Field 80 Million Barrels

The First Oil Well in Malaysia
The First Oil Well in Malaysia

The Gas Revolution

1980s-2000s

1981

  • St Joseph platform, Sabah began production of oil.

1982

  • Barton platform, Sabah began production.
  • Shell’s first natural gas field E11 in Sarawak came on-stream, with a structure measuring about 1,000 feet end-to-end.

1983

  • First natural gas shipped from MLNG plant in Bintulu, Sarawak.
  • F23 in Sarawak, Malaysia’s second gas complex, tied-in to E11, began production.

1984

  • Sabah Gas came on stream through Samarang Gas Complex.
  • Sabah Shell Petroleum Company Limited (SSPC) drilled Malaysia’s first horizontal well in the Erb West field, 180km offshore Labuan.
  • SSB started the corporate social responsibility programme called, “We Care, We Share” that spanned around Sarawak, Sabah and Labuan.
  • SSB initiated the inaugural Kenyalang Press Award to motivate and celebrate the Sarawak media fraternity.

1989

  • Kinabalu-1 of the SB-1 acreage struck oil in Sabah.
  • Shell Malaysia Upstream became first in the Royal Dutch Shell Plc group to set the world safety record by clocking 10 million work hours without lost time injury.
  • Project LINK launched together with Ministry of Education Malaysia to produce locally qualified welders for the oil and gas in Sarawak and Sabah.
E11 Gas Field
E11 Gas Field

Safety & Technology Leaders

1990s-2000s

1993

  • Shell’s Lutong Refinery, Malaysia’s first refinery, awarded MS-ISO 9002-1991 by SIRIM.
  • MLNG DUA PSC was signed to develop 11 gas fields for supply to the MLNG DUA Plant in Bintulu.

1994

  • Datuk Tan Ek Kia became the first Sarawakian and Managing Director for Shell Malaysia Upstream.
  • SSPC found gas in SB-1 off Sabah.
  • Kebabangan field in Sabah was discovered by Shell in 1994.
  • D35 in Sarawak produced first oil.

1995

  • SSPC’s first deep-water PSC was signed for Block G offshore Sabah.
  • Labuan Crude Oil Terminal celebrated 20 years, starting with 3,600 barrels per day to 100,000 barrels per day.
  • SSB installed the M3PQ-A integrated production module 225km off Bintulu, breaking two world records at that time - the 7,700 tonne topsides was the biggest in Asia, and the most remote offshore platform.
  • Shell Malaysia Upstream Professorial Chair at Universiti Malaysia Sarawak (UNIMAS) was established.
Miri, the city
Miri, the city

1996

  • M1 in Miri, the second gas field of the MLNG-DUA development, produced first gas.
  • SSB’s second deep-water PSC was signed for Block E, offshore Sarawak with water depths up to 2,000metres.
  • The Lutong Refinery became the first Malaysian refinery and second within the Royal Dutch Shell Plc Group to clock 10 years without lost time injuries.
  • Shell Malaysia Upstream was the first to apply multi-lateral well drilling technology in Asia Pacific region, at South Furious, Sabah.

1997

  • Kinabalu (KNDP-A) came on stream ahead of schedule, the first unmanned and fully remote-controlled platform in Sabah, a field developed exclusively with horizontal or multi-lateral wells.


1999

  • SSPC found oil in its first deep-water well in Block G, offshore Sabah.

2000

  • SSB signed its 15th PSC for Block SK-312.

2003

  • The Lutong Refinery, Miri was decommisioned in June 2003, after achieving 17 years LTI free and being operational since 1917.

2005

  • Miri was officially declared a city in the state of Sarawak.

2006

  • Shell Malaysia Upstream Professorial Chair in Petroleum Geoscience at Universiti Teknologi PETRONAS in Perak was established.

2007

  • Shell became part of the KPOC Joint operating company, together with PCSB and Conoco Phillips to develop the 1st of the 3 cluster fields in this Deepwater block.

2008

  • Shell Malaysia Sustainable Development Grants was launched to help NGOs and special interest groups initiate community and environmental projects.

Into the Future

2010

  • Shell Malaysia Upstream celebrated 100 years of upstream operations in Malaysia.
  • SSB signed Gas Sales Agreement for SK308.
  • Malaysia hosted the inaugural Shell Eco-marathon Asia at Sepang, Selangor

2012

  • SSB signed exploration PSC for SK319, deep-water blocks 2B and SK318, offshore Sarawak.
  • Shell Malaysia’s first Deep-water platform - Gumusut-Kakap field in Sabah commenced production through an innovative linking or tie-back to the Kikeh production facility.
  • SSB signed a Joint Research Development agreement with Petronas Research Sendirian Berhad to pursue research collaboration for improving recovery in Baram Delta Operations

2013

  • Shell Traffic Games celebrated its 50th year in Sarawak.
  • Shell Asia Pacific Wells Learning Hub opened in Miri, the first in the region to use advanced simulators.
  • SSPC signed agreement with the Sabah Department of Fisheries for the Fish Aggregation Device project, creating alternative and sustainable fish catch areas.
  • SSPC took Final Investment Decision to develop Malikai offshore Sabah.
SSB wins Gold Award, the first for Oil and Gas company, for Lean Management from the Malaysian Productivity Corporation (MPC) under Ministry of International Trade and Industry (MITI)
SSB wins Gold Award, the first for Oil and Gas company, for Lean Management from the Malaysian Productivity Corporation (MPC) under Ministry of International Trade and Industry (MITI)

2014 

  • SSB announced Final Investment Decision on E6 field development offshore Sarawak.
  • SSB found exploration success at Rosmari-1 well in Block SK318.
  • Shell Malaysia Safety Award was launched to recognise contractors and partners for exemplary HSE performance.
  • Piasau Camp (former residential area for SSB’s senior staff) was officially gazetted as Piasau Nature Reserve by the state government of Sarawak.
  • Gumusut-Kakap in Sabah semi-submersible floating production system produced first oil, with a peak annual production of 135,000 barrels per day, equivalent to 25% of Malaysia’s production.
  • Datuk Iain Lo became the first Sarawakian Chairman for Shell Malaysia.

2015

  • Earth breaking ceremony for Shell Malaysia Upstream’ s new production chemistry lab building in Miri, the largest upstream oil and gas laboratory in Sarawak.
  • Shell Malaysia LiveWIRE a new youth entrepreneur programme was introduced.

2016

  • Shell Malaysia debuts #ShellSelamatSampai Road Safety programme for students and community.
  • Malikai Tension Leg Platform (TLP), the second deepwater project in Sabah produced first oil.

2017

  • Malikai Deepwater project in Sabah won the Institutes of Engineers (IEW) Outstanding Award – first time in three decades, an oil and gas initiative has been accorded the highest engineers honors
  • Malikai in Sabah won the ASEAN Outstanding Engineering Achievement Award from ASEAN Federation of Engineering Organisations – the first and only oil and gas project in Malaysia to win the highest prize in design and construction in ASEAN
  • Ministry of Education (MOE) Malaysia recognised SSB for the outstanding contribution towards the ProjekLINK programme.
  • SSPC inked Memorandum of Understanding (MoU) for Sabah Petroleum Operations Technician (SPOT) Programme with TAS Institute of Oil and Gas.
  • Access to Energy (A2E), a social investment programme aims at provision of continuous energy was introduced in Sabah.

2018

  • E11 platform in Sarawak received the ‘Malaysian Society for Occupational Safety and Health (MSOSH) OSH Grand Award.
  • Gumusut-Kakap in Sabah bagged Gold Merit from the MSOSH OSH Award 2018.
  • SSB received a Miri City Mayor’s Award under the corporate category for long-standing contribution through CSR and Social Investment activities.
  • SSB won Gold Award, the first for Oil and Gas company, for Lean Management from the Malaysian Productivity Corporation (MPC) under Ministry of International Trade and Industry (MITI)

2019

  • SSB and Curtin University Malaysia launched the SSB Immersion and Digitalisation Module.
  • SSB and Department of Environment Malaysia inked a Memorandum of Understanding (MoU) for Program Kesedaran Alam Sekitar.
  • Gorek, Larak and Bakong in Sarawak, the first fully solar powered wellhead platforms came on stream.
  • Memorandum of Understanding (MoU) was signed with Universiti Malaysia Sabah (UMS) for the launch of Immersion Programme.
  • Deployment of PETRONAS FLNG-1 in Sabah waters to evacuate gas from Kebabangan Field to MLNG as a back up to the Sabah Sarawak Gas PipelineMalikai Phase 2 FID in October.
  • E6 platform in Sarawak produced crude where SSB made a come back in the oil business after two decades.

2020

  • Shell celebrates 110 years of upstream operations in Malaysia.
  • Ivan Tan becomes the first Mirian to be appointed as Vice President for Shell Malaysia & Philippines Upstream and Managing Director of SSB and SSPC.
Ivan Tan
Ivan Tan, Vice President for Shell Malaysia & Philippines Upstream

Historical photos gallery

The First Oil Well in Malaysia
Dr Charles Hose
Dr Joseph Theodor Erb
Miri Well #1 as it was in 1910
The Miri Club build on Club Hill, 1913
+17
The First Oil Well in Malaysia
Dr Charles Hose
Dr Joseph Theodor Erb
Miri Well #1 as it was in 1910
The Miri Club build on Club Hill, 1913
Coolies hauling a boiler uphill, 1911. In the early years, the Company had to rely very much on human power.
Pay day at Miri Head Office, 1918
Head Office staff in 1925. Sitting at the centre (front row) are MR H.C. Well (Accountant) and Major E.V. Benjamin (General Manager)
The Lutong Refinery as it was in 1920.
Miri Street scene, 1925
Company employees launching a sealine in Lutong 1921
Marine Slipway workers of the early years
Magnificent old Head Office in Miri
Some of the labourers working at Ensalai, built their house around a giant tree stump
First and Second Class travel on the Ensalai Railway
The Miri Recreational Club later destroyed in an Allied bombing raid
Orient Explorer, a mobile drilling rig which came to Sarawak waters in 1960
On November 30, 1976, Sarawak Shell Berhad and Sabah Shell Petroleum Co. Ltd. Signed a Production Sharing Contract (PSC) with PETRONAS.
Mr. Jan van Dam, Managing Director of Sarawak Shell Berhad,
E11 Gas Field
SSB wins Gold Award, the first for Oil and Gas company, for Lean Management from the Malaysian Productivity Corporation (MPC) under Ministry of International Trade and Industry (MITI)
Ivan Tan, first Mirian to be the Vice President, Shell Malaysia Usptream
The First Oil Well in Malaysia
1 / 22The First Oil Well in Malaysia
Dr Charles Hose
2 / 22Dr Charles Hose
Dr Joseph Theodor Erb
3 / 22Dr Joseph Theodor Erb
Miri Well #1 as it was in 1910
4 / 22Miri Well #1 as it was in 1910
The Miri Club build on Club Hill, 1913
5 / 22The Miri Club build on Club Hill, 1913
Coolies hauling a boiler uphill, 1911. In the early years, the Company had to rely very much on human power.
6 / 22Coolies hauling a boiler uphill, 1911. In the early years, the Company had to rely very much on human power.
Pay day at Miri Head Office, 1918
7 / 22Pay day at Miri Head Office, 1918
Head Office staff in 1925. Sitting at the centre (front row) are MR H.C. Well (Accountant) and Major E.V. Benjamin (General Manager)
8 / 22Head Office staff in 1925. Sitting at the centre (front row) are MR H.C. Well (Accountant) and Major E.V. Benjamin (General Manager)
The Lutong Refinery as it was in 1920.
9 / 22The Lutong Refinery as it was in 1920.
Miri Street scene, 1925
10 / 22Miri Street scene, 1925
Company employees launching a sealine in Lutong 1921
11 / 22Company employees launching a sealine in Lutong 1921.
Marine Slipway workers of the early years
12 / 22Marine Slipway workers of the early years
Magnificent old Head Office in Miri
13 / 22The magnificent old Head Office in Miri. It was unfortunately bombed during World War II.
Some of the labourers working at Ensalai, built their house around a giant tree stump
14 / 22Some of the labourers working at Ensalai, built their house around a giant tree stump
First and Second Class travel on the Ensalai Railway
15 / 22First and Second Class travel on the Ensalai Railway
The Miri Recreational Club later destroyed in an Allied bombing raid
16 / 22The Miri Recreational Club later destroyed in an Allied bombing raid
Orient Explorer, a mobile drilling rig which came to Sarawak waters in 1960
17 / 22Orient Explorer, a mobile drilling rig which came to Sarawak waters in 1960
On November 30, 1976, Sarawak Shell Berhad and Sabah Shell Petroleum Co. Ltd. Signed a Production Sharing Contract (PSC) with PETRONAS.
18 / 22On November 30, 1976, Sarawak Shell Berhad and Sabah Shell Petroleum Co. Ltd. Signed a Production Sharing Contract (PSC) with PETRONAS.
Mr. Jan van Dam, Managing Director of Sarawak Shell Berhad,
19 / 22Mr. Jan van Dam, Managing Director of Sarawak Shell Berhad, presenting a memento model Well #1 to Dr. Sulaiman Haji Daud, Minister of Land and Mineral Resources on the occasion of the handing over of Well #1 to the State Government on October 1, 1973. On Mr. van Dam’s right is Mr. Bert Ockeloen, Technical Manager of Sarawk Shell Berhad.
E11 Gas Field
20 / 22E11 Gas Field
SSB wins Gold Award, the first for Oil and Gas company, for Lean Management from the Malaysian Productivity Corporation (MPC) under Ministry of International Trade and Industry (MITI)
21 / 22SSB wins Gold Award, the first for Oil and Gas company, for Lean Management from the Malaysian Productivity Corporation (MPC) under Ministry of International Trade and Industry (MITI)
Ivan Tan, first Mirian to be the Vice President, Shell Malaysia Usptream
22 / 22Ivan Tan, first Mirian to be the Vice President, Shell Malaysia Usptream

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