Sarawak Shell BHD celebrates the Mechanical Completion of Engineering, Procurement and Construction (EPC) of Fixed offshore structure works for Timi Field Development project
Oct 01, 2022
Kuching - Sarawak Shell Bhd (SSB) today, together with its partners PETRONAS Carigali Sdn Bhd and Brunei Energy Exploration, celebrated the mechanical completion of Engineering, Procurement and Construction (EPC) of fixed offshore structure works for the Timi Field Development Project in a ceremony at the Brooke Dockyard & Engineering Works Corporation (Demak Yard), Kuching, Sarawak, witnessed by YAB Datuk Patinggi Tan Sri (Dr) Abang Haji Abdul Rahman Zohari bin Tun Datuk Abang Haji Openg, Premier of Sarawak. The Timi Field Development Project is being developed as part of the SK318 Production Sharing Contract with SSB as the Operator.
The newly completed substructure and topsides will then be loaded up and transported to the Timi field, situated approximately 200 kilometres (km) off the coast of Sarawak, Malaysia, for installation. The Timi development features SSB’s first wellhead platform in Malaysia that is powered by a solar and wind hybrid renewable power system. This unmanned platform is approximately 60% lighter than a conventional Tender Assisted Drilling (TAD) wellhead platform.
YAB Datuk Patinggi Tan Sri (Dr) Abang Haji Abdul Rahman Zohari bin Tun Datuk Abang Haji Openg, Premier of Sarawak commented, “Sarawak Shell Berhad has pioneered the oil and gas industry in Malaysia, leading the way in oil and gas expertise, providing job opportunities for Sarawakians and in recent times, leading the way in energy transition. This project right here in Kuching, in partnership with a fully owned Sarawakian company, Brooke Dockyard & Engineering Works Corporation (Demak Yard), is further proof of the kind of international level expertise available here in Sarawak”.
“With over 100 years of operations in Malaysia, Shell is proud to be able to take this next step in a project which is the first of its kind here. Timi is powered by a solar and wind hybrid power system, reaffirming Shell’s commitment as a partner in powering progress. This project is vital to us delivering Shell’s strategy and in support of economic growth in Sarawak and Malaysia. I would like to thank PETRONAS, the State of Sarawak and our partners for their support in achieving this important milestone,” shared Ivan Tan, Chairman of Shell Malaysia and Senior Vice President Upstream Malaysia.
The Timi development is designed to reach up to 50,000 barrels of oil equivalent per day (boe/d) peak production and will evacuate its gas to the F23 production hub via an 80 km pipeline while supporting the future growth in the central Luconia area, off the coast of Sarawak.
As one of the pioneers in building the country’s energy industry, SSB aims to lead in the country’s energy transition by increasing investment in lower carbon energy solutions, while pursuing competitive and carbon resilient Upstream investments.
Notes to editors
- Sarawak Shell Berhad (SSB), a subsidiary of Shell plc, announced on 30th August 2021 that it took final investment decision (FID) on the Timi gas development project together with its partners PETRONAS Carigali Sdn Bhd (15%) and Brunei Energy Exploration (10%)
- Timi will be developed as part of the SK318 Production Sharing Contract with SSB as the Operator holding 75% equity.
- Timi is a sweet gas field discovered in 2018 under the SK318 PSC.
- Timi is located at approximately 252 km north-west of Bintulu, Sarawak and 202km north-west from Miri, Sarawak
- It will have a new unmanned wellhead platform (WHP) tied back to the existing Shell operated F23 hub platform via a new 80km pipeline.
- Leveraging engineering expertise, early market engagement and driving competitive scoping have resulted in a design that is 60% lighter than conventional designs.
- The Timi development concept supports Shell’s commitment towards providing cleaner energy solutions by adopting a solar and wind hybrid power generation system instead of conventional power generation systems that rely mainly on hydrocarbon combustion.
- On 5th September 2022, Shell announced investment in Rosmari-Marjoram in Sarawak, Malaysia. Rosmari-Marjoram is a natural gas project which will be developed with SSB as the Operator holding 80% equity and partner PCSB with 20% equity.
Enquiries
Prema Jayabalan
Manager, Media Relations,
Shell Malaysia
Prema.Jayabalan@Shell.com
Cindy Lopez
Country Head, Corporate Relations,
Shell Malaysia
Cindy.Lopez@Shell.com
Media International: +44 207 934 5550
Media Asia Pacific: apac-media@shell.com
Cautionary note
The companies in which Shell plc directly and indirectly owns investments are separate legal entities. In this announcement, “Shell”, “Shell Group” and “Group” are sometimes used for convenience where references are made to Shell plc and its subsidiaries in general. Likewise, the words “we”, “us” and “our” are also used to refer to 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 announcement refer to entities over which 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. “Joint ventures” and “joint operations” are collectively referred to as “joint arrangements”. 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.
Forward-Looking Statements
This announcement 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 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 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’’, “milestones”, ‘‘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 Shell and could cause those results to differ materially from those expressed in the forward-looking statements included in this announcement, 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, judicial, 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; (m) risks associated with the impact of pandemics, such as the COVID-19 (coronavirus) outbreak; and (n) 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 announcement 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 Shell plc’s Form 20-F for the year ended December 31, 2021 (available at www.shell.com/investor and www.sec.gov). These risk factors also expressly qualify all forward-looking statements contained in this announcement and should be considered by the reader. Each forward-looking statement speaks only as of the date of this announcement, October 1, 2022. Neither 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 announcement.
Shell’s net carbon footprint
Also, in this announcement we may refer to Shell’s “Net Carbon Footprint” or “Net Carbon Intensity”, which include Shell’s carbon emissions from the production of our energy products, our suppliers’ carbon emissions in supplying energy for that production and our customers’ carbon emissions associated with their use of the energy products we sell. Shell only controls its own emissions. The use of the term Shell’s “Net Carbon Footprint” or “Net Carbon Intensity” are for convenience only and not intended to suggest these emissions are those of Shell plc or its subsidiaries.
Shell’s net-Zero Emissions Target
Shell’s operating plan, outlook and budgets are forecasted for a ten-year period and are updated every year. They reflect the current economic environment and what we can reasonably expect to see over the next ten years. Accordingly, they reflect our Scope 1, Scope 2 and Net Carbon Footprint (NCF) targets over the next ten years. However, Shell’s operating plans cannot reflect our 2050 net-zero emissions target and 2035 NCF target, as these targets are currently outside our planning period. In the future, as society moves towards net-zero emissions, we expect Shell’s operating plans to reflect this movement. However, if society is not net zero in 2050, as of today, there would be significant risk that Shell may not meet this target.
Forward Looking Non-GAAP measures
This announcement may contain certain forward-looking non-GAAP measures such as cash capital expenditure and divestments. We are unable to provide a reconciliation of these forward-looking Non-GAAP measures to the most comparable GAAP financial measures because certain information needed to reconcile those Non-GAAP measures to the most comparable GAAP financial measures is dependent on future events some of which are outside the control of Shell, such as oil and gas prices, interest rates and exchange rates. Moreover, estimating such GAAP measures with the required precision necessary to provide a meaningful reconciliation is extremely difficult and could not be accomplished without unreasonable effort. Non-GAAP measures in respect of future periods which cannot be reconciled to the most comparable GAAP financial measure are calculated in a manner which is consistent with the accounting policies applied in Shell plc’s consolidated financial statements.
The contents of websites referred to in this announcement do not form part of this announcement.
We may have used certain terms, such as resources, in this announcement that the United States Securities and Exchange Commission (SEC) strictly prohibits us from including in our filings with the SEC. 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.