Shell Brings Serai Project Onstream

The Serai gas field, located offshore Sarawak Block SK-8, has started delivering natural gas, its operator Shell Malaysia announced Friday.

The first gas was delivered on June 9 with the start up of the field's subsea gas production facilities, the company said in a statement.

The gas field, discovered in 1993, is produced as a satellite to the nearby M3 gas product facilities, supplying feed gas to the MLNG Tiga plant in Bintulu.

Serai's subsea wells' total production of 300 million cu ft per day is sent to shore via Shell's M3 and E11 hub complexes.

Shell Malaysia, a unit of Royal Dutch/Shell Group owns a 37.5 percent stake in the Serai project. Nippon Oil Exploration (Sarawak) Ltd (Nosa) also holds an equal 37.5 percent equity in the field while Petronas Carigali, the upstream arm of Petronas owns the remaining 25 percent share.

MLNG Tiga is a joint venture between Petronas (60 percent), the Sarawak state government (10 percent), Shell (15 percent), Nippon Oil (10 percent) and Diamond Gas Netherlands (5.0 percent).

MLNG Tiga is expected to produce 6.8 million tons of liquefied natural gas (LNG) annually.