Shell starts oil production from Gumusut-Kakap field

by **Cals** Wed 08 Oct 2014, 22:59

Business & Markets 2014

Written by Supriya Surendran of theedgemalaysia.com

Wednesday, 08 October 2014 16:36

KUALA LUMPUR (Oct 8): Sabah Shell Petroleum Co Ltd has started oil production from the Gumusut-Kakap floating platform off Sabah, located in waters up to 1,200m deep.

Shell Malaysia Ltd chairman Iain Lo said the floating platform, which was built by Malaysian Marine and Heavy Engineering Sdn Bhd, is the latest addition to Shell’s portfolio of major deep water projects, and is expected to reach an annual peak oil production of around 135,000 barrels a day, once fully ramped up.

“Shell is pleased to be able to play an active role in developing the nation’s deep water resources and deep-water service industry, [as] deep water resources are critical to Malaysia’s long term energy security,” he said in a statement today.

Lo said with the oil production now under way, work on the gas injection facilities is continuing with an expected start-up during 2015.

The Gumusut-Kakap project is a joint venture between Shell, who is the operator with a 33% stake, ConocoPhilips Sabah Ltd (33%), Petronas Carigali Sdn Bhd (20%) and Murphy Sabah Oil Co Ltd (14%).

Lo said the Gumusut-Kakap field is expected to contribute up to 25% of the country’s oil production.

“Gumusut-Kakap is our first deep-water development in Malaysia, and uses the best of Shell’s global technology and capabilities in deep water, the field is one of a series of substantial deep-water start-ups this year, driving returns and growth for shareholders,” said Royal Dutch Shell PLC upstream international director Andrew Brown in the statement.

Assembling the vast structure, whose four decks total nearly 40,000 sq m, involved the world’s heaviest onshore lift, and the project uses Shell Smart Fields Technology to carefully control production from the undersea wells to achieve greater efficiency.

Oil is transported to the Sabah Oil and Gas Terminal onshore at Kimanis, Malaysia via a 200km long pipeline.