Shell completes Gumusut-Kakap phase 2 project

Kota Kinabalu – Sabah Shell Petroleum Company Ltd, the operator of the Gumusut-Kakap (GK) semi Floating Production System located offshore Sabah, today 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 Simon Durkin, Vice-President, Malaysia Upstream. “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% since taking final investment decision in Q4 2017. This has been achieved through competitive scoping and efficient project execution.

The Gumusut-Kakap project is a joint venture between Shell (29%, operator), ConocoPhillips (29%), PETRONAS Carigali Sdn Bhd (16.8%), PTTEP Sabah Oil Ltd (6.4%), PERTAMINA (2.7%) 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.
For further information on Shell’s deep-water initiatives, visit https://www.shell.com/energy-and-innovation/deep-water.html

About Shell Malaysia – 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. Shell currently has a strong market presence in the upstream and downstream sector in Malaysia.

For further Media Enquiries, please contact:

PREMA JAYABALAN
Senior Manager, Media Relation & Issues Management, Shell Malaysia
Email: prema.jayabalan@shell.com

Cautionary Note

The companies in which Royal Dutch Shell plc directly and indirectly owns investments are separate legal entities. In this release “Shell”, “Shell group” and “Royal Dutch Shell” are sometimes used for convenience where references are made to Royal Dutch Shell plc and its subsidiaries in general. Likewise, the words “we”, “us” and “our” are also used to refer to Royal Dutch Shell plc and its subsidiaries in general or to those who work for them. These terms are also used where no useful purpose is served by identifying the particular entity or entities. ‘‘Subsidiaries’’, “Shell subsidiaries” and “Shell companies” as used in this release refer to entities over which Royal Dutch Shell plc either directly or indirectly has control. Entities and unincorporated arrangements over which Shell has joint control are generally referred to as “joint ventures” and “joint operations”, respectively. Entities over which Shell has significant influence but neither control nor joint control are referred to as “associates”. The term “Shell interest” is used for convenience to indicate the direct and/or indirect ownership interest held by Shell in an entity or unincorporated joint arrangement, after exclusion of all third-party interest.

This release contains forward-looking statements (within the meaning of the U.S. Private Securities Litigation Reform Act of 1995) concerning the financial condition, results of operations and businesses of Royal Dutch Shell. All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements. Forward-looking statements are statements of future expectations that are based on management’s current expectations and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in these statements. Forward-looking statements include, among other things, statements concerning the potential exposure of Royal Dutch Shell to market risks and statements expressing management’s expectations, beliefs, estimates, forecasts, projections and assumptions. These forward-looking statements are identified by their use of terms and phrases such as “aim”, “ambition’, ‘‘anticipate’’, ‘‘believe’’, ‘‘could’’, ‘‘estimate’’, ‘‘expect’’, ‘‘goals’’, ‘‘intend’’, ‘‘may’’, ‘‘objectives’’, ‘‘outlook’’, ‘‘plan’’, ‘‘probably’’, ‘‘project’’, ‘‘risks’’, “schedule”, ‘‘seek’’, ‘‘should’’, ‘‘target’’, ‘‘will’’ and similar terms and phrases. There are a number of factors that could affect the future operations of Royal Dutch Shell and could cause those results to differ materially from those expressed in the forward-looking statements included in this release, including (without limitation): (a) price fluctuations in crude oil and natural gas; (b) changes in demand for Shell’s products; (c) currency fluctuations; (d) drilling and production results; (e) reserves estimates; (f) loss of market share and industry competition; (g) environmental and physical risks; (h) risks associated with the identification of suitable potential acquisition properties and targets, and successful negotiation and completion of such transactions; (i) the risk of doing business in developing countries and countries subject to international sanctions; (j) legislative, fiscal and regulatory developments including regulatory measures addressing climate change; (k) economic and financial market conditions in various countries and regions; (l) political risks, including the risks of expropriation and renegotiation of the terms of contracts with governmental entities, delays or advancements in the approval of projects and delays in the reimbursement for shared costs; and (m) changes in trading conditions. No assurance is provided that future dividend payments will match or exceed previous dividend payments. All forward-looking statements contained in this release are expressly qualified in their entirety by the cautionary statements contained or referred to in this section. Readers should not place undue reliance on forward-looking statements. Additional risk factors that may affect future results are contained in Royal Dutch Shell’s Form 20-F for the year ended December 31, 2018 (available at www.shell.com/investor and www.sec.gov). These risk factors also expressly qualify all forward-looking statements contained in this release and should be considered by the reader. Each forward-looking statement speaks only as of the date of this release, September 26, 2019. Neither Royal Dutch Shell plc nor any of its subsidiaries undertake any obligation to publicly update or revise any forward-looking statement as a result of new information, future events or other information. In light of these risks, results could differ materially from those stated, implied or inferred from the forward-looking statements contained in this release.

We may have used certain terms, such as resources, in this release that the United States Securities and Exchange Commission (SEC) strictly prohibits us from including in our filings with the SEC. U.S. Investors are urged to consider closely the disclosure in our Form 20-F, File No 1-32575, available on the SEC website www.sec.gov.