Shell completes Gumusut-Kakap phase 2 project
Sep 26, 2019
The project will add at peak production 50,000 barrels of oil equivalent per day to the Gumusut-Kakap semi Floating Production System
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.
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Senior Manager, Media Relation & Issues Management, Shell Malaysia
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