Sabah Shell Petroleum Company (SSPC), the Malaysian unit of Shell, is set to advance Phase 4 of the Gumusut-Kakap-Geronggong-Jagus East (GKGJE) deepwater offshore development project.
The company, together with its co-venturers, has reached a final investment decision (FID) for GKGJE Phase 4 project.
Its co-venturers in the project include ConocoPhillips Sabah, Petronas Carigali, PTTEP Sabah Oil Limited, and Pertamina Malaysia Eksplorasi Produksi, among others.
GKGJE Phase 4 is a subsea tie-back project, expected to achieve the first oil in late 2024.
It involves the drilling of four wells tied back to the Gumusut-Kakap semi-submersible Floating Production System (GK-Semi FPS).
SSPC operates the GK-Semi FPS, which is located off the coast of Sabah, offshore Malaysia.
The project, which will revive the output of Kimanis crude, has been declining due to a lack of investment and technical issues at the Gumusut-Kakap and Malikai fields, said Shell.
Shell Malaysia upstream senior vice president and chairman Ivan Tan said: “Taking FID for GKGJE Phase 4 reaffirms Shell’s continued commitment to deliver competitive and sustainable projects to meet the world’s energy demands.
“I would like to thank Petronas, our co-venturers and the government for their support in achieving this milestone.”
Tan added: “We are pleased to be able to achieve the first oil from GK Phase 3 on schedule. This has been a truly remarkable team effort to overcome disruptions presented by the Covid-19 pandemic.”
An earlier phase of the project, Phase 3 of the Gumusut-Kakap (GK) project, achieved the first oil delivery in July this year, as per the planned schedule.
The Phase 3 project included two oil producers and two water injection wells, to enhance the recoverable oil volumes from the field.
Located in water depths of 1,200m, it was its first deepwater offshore project in Malaysia and the project started production through the GK-Semi FPS in 2014, said Shell.
Last month, Shell subsidiary Sarawak Shell Berhad (SSB) and Petronas’ upstream unit Carigali have taken FID for the Rosmari-Marjoram gas fields, offshore Malaysia.
