Shell Malaysia to Go Ahead with E11 Hub Project

Shell Malaysia has announced that its Sarawak upstream company, Sarawak Shell Berhad, will proceed with Stage 1 of its "E11 Hub" Project.

Its completion will see centralization of gas output from surrounding offshore Sarawak fields through one integrated facility for processing, before channeling to the PETRONAS LNG complex, - currently the largest liquefied natural gas complex in the world. Once completed, the E11 Hub complex will process up to 40% of committed Sarawak gas supply.

Shell Malaysia Chairman, Jon Chadwick, said, "This is a strategically important project for our Sarawak assets in terms of delivery and performance and it again demonstrates Shell's long term investment commitment to Malaysia."

The project will focus on development of ~ 500 million barrels of oil equivalent of reserves [RU1]and increasing capacity of the existing E11 facility from 700 million cubic feet per day to 1,650 million cubic feet per day by 2006.

Shell Malaysia's partner in the project is PETRONAS Carigali - Shell Malaysia, the operator, and PETRONAS Carigali each owns a 50% interest.

The E11 Hub project comprises development of the Shallow Clastics, E8, F13 East and F13 West fields as satellites linked to the existing E11 facilities. Project execution will be phased over two focused periods of activity with Stage 1 targeted to deliver first gas from the Shallow Clastics field in October 2005, and from the E8 field in July 2006.

Stages 2, 3 and 4 are proposed to be undertaken commencing in 2008 and would entail further development of the Shallow Clastics accumulation as well as the F13 East and F13 West fields.

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