Shell Invests In Third Phase Of Malaysian Deepwater Project

Shell’s Malaysian arm, Sabah Shell Petroleum Company (SSPC), has taken a final investment decision (FID) on Phase 4 of the Gumusut-Kakap-Geronggong-Jagus East (GKGJE) deepwater offshore development project.

Shell is the operator of the Gumusut-Kakap semi-submersible Floating Production System located off the coast of Sabah, Malaysia. The GKGJE Phase 4 development is a subsea tie-back project that is expected to achieve first oil in late 2024. It involves the drilling of four wells and ties back to the GK-Semi FPS.

“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,” says Ivan Tan, chairman of Shell Malaysia and Senior Vice President for Upstream Malaysia.

On a related note, first oil delivery for an earlier phase of the project, Phase 3, was achieved on schedule earlier, on July 31, 2022. Phase 3 consists of two oil producer and two water injection wells to enhance the recoverable oil volumes from the field.

“We are pleased to be able to achieve 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,” Tan added.

Located in water depths of 1,200 meters, Gumusut-Kakap was the first deepwater offshore project for Shell in Malaysia and began production via the GK-Semi FPS in 2014.

The GKGJE project is a joint venture among Sabah Shell Petroleum Company and Shell Sabah Selatan, ConocoPhillips, Petrronas Carigali, PTTEP, Petramina, and others.

The Phase 2 development involved the incorporation of four additional subsea tieback wells to GK-Semi FPS and was completed in 2019. It achieved first oil in August 2019.

It is worth noting that this was Shell’s second FID for a project in Malaysia this month. The company in early September announced plans to develop the Rosmari-Marjoram gas project off Sarawak with first gas expected in 2026.

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