Shell Celebrates the first Oil Production from it’s E6 field Development

Miri, 4 September 2019 – Sarawak Shell Berhad (SSB) reaches another major milestone when the E6 Field under the Production Sharing Contract (PSC) SK308 hit its first oil production on 30^th May 2019. In addition to that, since the first oil was produced, E6 went on to reach its one millionth barrel of oil on the 20^th of August.

Datuk Iain Lo, Shell Malaysia Chairman, said that this achievement could only be made possible with the effective collaboration amongst the teams, partners and stakeholders.

“This success is a result of the excellent collaboration between our key stakeholders and partners – PETRONAS Malaysia Petroleum Management (MPM), PETRONAS Carigali, Brooke Dockyard and Engineering Works Corporation (BDEWC), Sapura Offshore, Velesto, Dayang Enterprise Sdn Bhd, Transfame, Ranhill Worley, EEW, Dialogue, and other contractors, vendors and various support teams within Shell led by the E6 Project Team. This collaboration has proven essential in ensuring the smooth and safe delivery for the E6 Field,” added Datuk Iain Lo.

The celebration dinner was graced by the Chief Minister of Sarawak, the Right Honourable, Datuk Patinggi Dr. Abang Haji Abdul Rahman Zohari Bin Datuk Abang Haji Openg.

“I am impressed with Shell’s contribution to the social-economy growth and talent development through this joint venture with its partners that created many job opportunities for people. I encourage the rest of the corporate entities to follow Shell’s footstep, to do more for our state’s development,” said Datuk Patinggi Dr. Abang Haji Abdul Rahman Zohari Bin Datuk Abang Haji Openg.

The E6 project comprised the drilling of three 6000 feet-long horizontal wells with a state-of-the-art smart completion that chokes unwanted fluids and helps promote oil production from the entire well, maximising recovery. These are some of the most challenging wells with the most sophisticated completions ever done in Shell Malaysia Upstream’s history. And the E6 reservoir is unique, comprising a thin oil rim, which is the first carbonate oil-rim development of its kind in Malaysia.

Besides its competitive quality and technology, the E6 project has displayed a strong safety performance record from Shell and the contractors, as the project recorded roughly about five years of continuous work without any impact to its safety record.

Apart from a robust safety performance, since the epoch of E6 development in Sejingkat, the E6 project team in collaboration with the contractors created impactful fenceline community programmes, through social investment initiatives, focusing on road safety, capacity-building and community development.

The dinner celebrated E6’s partnership journey with the state government and contractors, while recognising and rewarding the partners and the project team who played a part in the success of the E6 project. The evening also saw, Shell Malaysia’s chairman announcing that Shell Malaysia will be celebrating its 110^th year in the Upstream business next year.

With this notable milestone, Shell Malaysia is proud of its history here in Sarawak and looks forward to a long, successful journey with continuous innovation and development with its key stakeholders to drive the socio-economic development of the state. The company is also driven to continue contributing to the local talent pipeline, while playing its part in contributing towards the communities and the society through its various flagship social investment activities.

For further Media Enquiries, please contact:
PREMA JAYABALAN
Senior Manager, Media Relations and Issue Management, Shell Malaysia
Email: prema.jayabalan@shell.com

About Shell – www.shell.com.my
Shell is a global leader in power, energy, and gas technology and is working to meet increasing energy demand and supply challenges by delivering smarter products and cleaner energy, infrastructure, and by developing new energy sources while addressing the impact on the environment. Malaysia is one of Shell’s heartlands. The history of Royal Dutch Shell in Malaysia started more than 125 years ago in Miri, Sarawak. Shell currently has a strong market presence in the upstream and downstream sector in Malaysia. 

Notes to Editors:

• The E6 field development is a part of the SK308 production sharing contract awarded by PETRONAS to Sarawak Shell Berhad (50 per cent, operator) and PETRONAS Carigali Sdn Bhd (50 per cent). E6DP-A is an oil and gas integrated platform that produces gas to E8DR-A (Shell Operated) 16 km away and oil to D35 (PETRONAS Operated) 66 km away.
  
  
• E6 project achieved numerous recognitions in various areas:
  
  
  • Quality: The team received 6 Global Quality Recognition Awards for excellent quality intervention and driving quality behavioural requirements on a day-to-day execution.
  • Technology: Drilled three 6000 feet-long horizontal wells with state-of-the-art technology called Autonomous Inflow Control Device and Interval Control Valves to achieve maximum recovery. These are some of the most challenging wells with the most sophisticated completions ever done in Shell Malaysia Upstream’s history. [And the E6 reservoir is unique, comprising a thin oil rim, which is the first development of its kind in Sarawak.]
  • Competitiveness: Achieved a record-breaking peak lay rate of 337 joints per day for pipelay productivity, various offshore campaigns achieved Best-In-Class Hands-On Tools Time through Continuous Improvement processes to enable predictable offshore execution.
  • Digitalisation: Championed the adoption of digital technologies for automated reporting, and for improving Project to Asset, to enable a systematic and auditable handover.