Shell Malaysia & Petronas Carigali Produce First Gas from E11 Hub

Shell Malaysia and Petronas Carigali Sdn Bhd have achieved a major milestone with the delivery of first gas from their jointly operated new Shallow Clastics satellite field ahead of schedule.

First gas from the Shallow Clastics field, part of the mammoth E11 Hub Integrated Gas Project offshore Sarawak, Malaysia, flowed through a combination of existing and new, dedicated facilities. So far five Shallow Clastics wells have come on stream from the existing E11 platform and a new satellite platform installed during 2005. Two further phases of Shallow Clastics field development are planned.

The other E11 satellite gas field developments, E8, F13 West and F13 East are expected to come on stream over the next three years. A new satellite platform has already been installed for E8 and the Project team is currently focused on completing the installation and drilling program for the E8 field development.

Once completed, the RM5.3 billion E11 Hub Integrated Gas Projectwill bring gas production from the fields through one integrated hub, before channeling the processed gas to the PETRONAS Liquefied Natural Gas (LNG) complex at Bintulu.

Shell Malaysia and Petronas Carigali each have a 50 percent interest in the E11 Hub Integrated Gas Project, with Shell Malaysia as the operator. The two partners have so far invested RM1.0 billion each in the Project.

Datuk Jon Chadwick, Chairman of Shell Malaysia, said: "This milestone is an important contribution to delivering Shell Malaysia's objective of more integrated gas. The E11 Hub Project is one of the largest ongoing projects undertaken by Shell in Asia Pacific and we are pleased the project is being delivered on schedule."

Encik Mohd Johari Dasri, Managing Director of Petrons Carigali said: "We are indeed proud of this achievement, which is a testimony of the commitment of all involved to the success of the Project."