Sabah Shell Petroleum Company (SSPC), the Malaysian subsidiary of Shell, and its partners have made the final investment decision (FID) to advance the Phase 4 development of the Gumusut-Kakap-Geronggong-Jagus East (GKGJE) deepwater project.

The project partners include ConocoPhillips Sabah, PTTEP Sabah Oil Limited, Petronas Carigali, and Pertamina Malaysia Eksplorasi Produksi, among others.

Planned to start production in late 2024, GKGJE Phase 4 is a subsea tie-back project intended to revive the output of Kimanis crude.

It will involve the drilling of four wells tied back to the SSPC-operated Gumusut-Kakap semi-submersible Floating Production System (GK-Semi FPS) located off the coast of Sabah.

The GKGJE project aims to revitalise the declining production of Kimanis crude, which is said to be the country’s flagship export grade, reported Reuters.

Production of Kimanis crude has been declining due to a lack of investment and technical issues at the Gumusut-Kakap and Malikai fields.

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By GlobalData

Shell Malaysia upstream senior vice-president and chairman Ivan Tan said: “We are pleased to be able to achieve the 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.”

The Phase 3 of the Gumusut-Kakap (GK) project, which start production in July this year, included two oil producers and two water injection wells to enhance the field’s recoverable oil volumes.

Commenting on the GK Phase 3 deepwater development project, Petronas Malaysia Petroleum Management (MPM) senior vice-president Mohamed Firouz Asnan said: “The delivery of new production from GK Phase 3 represents yet another milestone in the development of this world-class field, further unlocking its full potential.

“Whilst the shallow inboard areas continue to underpin the country’s production, the future lies in the deepwater plays which makes up a quarter of our offshore acreages.”