Latest news with #GKGJE
Yahoo
10-03-2025
- Business
- Yahoo
Shell starts oil production from phase four of Malaysia's deep-water GKGJE project
Sabah Shell Petroleum Company (SSPC) has started first oil production from phase four of the Gumusut-Kakap-Geronggong-Jagus East (GKGJE) deep-water offshore project. Oil from phase four is transported to the existing Gumusut-Kakap semi-submersible floating production system (GK-Semi FPS) off the coast of Sabah, Malaysia. As the operator, SSPC manages the project, which includes a subsea tie-back crossing the Malaysia-Brunei border comprising three producer wells and one water injection well. Gumusut-Kakap, Shell's first deep-water project in Malaysia, lies at a depth of 1,200m and began production in 2014. Shell Malaysia country chair and senior vice-president for integrated gas & upstream Malaysia Siti Sulaiman said: 'This achievement reaffirms Shell's ongoing commitment in innovating and executing safe, reliable and sustainable projects that meets today's energy needs. I would like to thank Malaysia Petroleum Management Petronas, Petroleum Authority of Brunei Darussalam, National Unitisation Secretariat, our government in Malaysia and our partners for their unwavering support in achieving this significant milestone.' The phase four development is expected to bolster Shell's global initiative to introduce new upstream projects that will cumulatively add around 500,000 barrels of oil equivalent per day (boepd) at peak production between 2023 and 2025. SSPC operates two key deep-water oil assets in Sabah: Gumusut-Kakap, which commenced in 2014, and Malikai, which followed in 2016. The completion of Gumusut-Kakap phase two in 2019 added four subsea tie-back wells to the GK-Semi floating production system, with the first oil achieved in August 2019. Phase three saw first oil in July 2022. The final investment decision for phase four was made in October 2022, with the project expected to produce an average of approximately 21,000boepd, representing the total gross production. The GKGJE project is a collaborative venture with partners including ConocoPhillips Sabah, Petronas Carigali, PT PERTAMINA Malaysia Eksplorasi Produksi, PTTEP Sabah Oil, Shell Sabah Selatan, SSPC and several Brunei-based companies. In March 2021, Brunei and Petronas formalised a unitisation agreement for the GKGJE fields, designating SSPC as the unit operator. "Shell starts oil production from phase four of Malaysia's deep-water GKGJE project" was originally created and published by Offshore Technology, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
Reuters
07-03-2025
- Business
- Reuters
Shell's Sabah deepwater oil project begins phase 4 production
SINGAPORE, March 7 (Reuters) - Shell (SHEL.L), opens new tab has begun production at Phase 4 of its Sabah deepwater oil project in Malaysian and Bruneian waters, it said on Friday. The Gumusut-Kakap-Geronggong-Jagus East (GKGJE) project is part of Shell's efforts to revive oil and gas production in Malaysia and the Kimanis crude grade in particular. Phase 4 of the project is expected to produce about 21,000 barrels of oil equivalent per day (boepd) on average, a Shell statement said. Phase 3 began production in July 2022. Shell aims to deliver an additional 500,000 boepd at peak production from new upstream projects such as GKGJE between 2023 and 2025. Other partners in the joint venture include Petronas, ConocoPhillips (COP.N), opens new tab, PTTEP ( opens new tab and Pertamina. The Reuters Power Up newsletter provides everything you need to know about the global energy industry. Sign up here.
