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October 8, 2014

Shell begins oil production from Malaysian Gumusut-Kakap platform

Shell has begun oil production at the Gumusut-Kakap floating platform, which is in waters of up to 1,200m, offshore Malaysia.

Shell has begun oil production at the Gumusut-Kakap floating platform, which is in waters of up to 1,200m, offshore Malaysia.

The company expects the platform to reach a yearly peak oil production of about 135,000 barrels a day, once operating at full capacity.

"Gumusut-Kakap is our first deep-water development in Malaysia, and uses the best of Shell’s global technology and capabilities in deep water."

Oil production is currently under way and the company is working on the gad injection facilities, which are expected to commence operations in 2015.

Shell Upstream international director Andrew Brown said: "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."

Malaysian Marine and Heavy Engineering built the floating platform, which adds to Shell’s portfolio of worldwide deep-water projects.

Shell Smart Fields technology is being used in the project to control production from the undersea wells for greater efficiency.

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

Shell’s involvement in the project has enabled it to share deep-water expertise with Malaysian energy firms and assist the Malaysian Government in establishing an offshore industry hub.

Shell Malaysia Chairman Iain Lo said: "Deep-water resources are critical to Malaysia’s long-term energy security. The Gumusut-Kakap field is expected to contribute up to 25% of the country’s oil production."

Shell operates the Gumusut-Kakap project with a 33% stake, and ConocoPhillips Sabah owns a 33% interest.

Petronas Carigali and Murphy Sabah Oil own 20% and 14% stakes, respectively.

Energy

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