Shell Commences First Oil from Gumusut-Kakap Floating Platform Off Sabah

Shell commences oil production from the Gumusut-Kakap floating platform offshore Sabah.
Shell commences oil production from the Gumusut-Kakap floating platform offshore Sabah.

Royal Dutch Shell plc announced Wednesday the commencement of first oil from the Gumusut-Kakap floating platform, located in water depths up to 3,900 feet (1,200 meters) off the coast of Sabah, East Malaysia.

When fully operational, the platform – with its 23,000-ton topsides comprising four decks, including living quarters and technical buildings – is expected to reach an annual peak oil production of around 135,000 barrels a day. Work on the gas injection facilities is progressing, with start-up scheduled for 2015.

“We are delighted to have reached this milestone with our partners ... Gumusut-Kakap is our first deepwater development in Malaysia, and uses the best of Shell’s global technology and capabilities in deepwater. The field is one of a series of substantial deepwater start-ups this year, driving returns and growth for shareholders,” Andrew Brown, Shell Upstream International director said in Wednesday's press release.

The Gumusut-Kakap floating platform – built locally by Malaysian Marine and Heavy Engineering Sdn Bhd (MMHE) – has four decks totaling nearly 430,556 square feet (40,000 square meters) and involved the world’s heaviest onshore lift. Oil from the project, which uses Shell Smart Fields technology to carefully control production from the undersea wells to achieve greater efficiency, will be transported to the Sabah Oil and Gas Terminal onshore at Kimanis, Malaysia via a 124 mile- (200 kilometer-) long pipeline.

“Shell is pleased to be able to play an active role in developing the nation’s deepwater resources and deepwater service industry. Deepwater resources are critical to Malaysia’s long-term energy security. The Gumusut-Kakap field is expected to contribute up to 25 percent of the country’s oil production,” Shell Malaysia Chairman Iain Lo added.

Partners in the Gumusut-Kakap project comprises field operator Shell and ConocoPhillips Sabah, each with 33 percent interest, while Petronas Carigali and Murphy Sabah Oil hold the 20 percent and 14 percent, respectively.

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