Sabah Shell Petroleum Company (SSPC), a subsidiary of Shell, has officially begun oil production from the fourth phase of the Gumusut-Kakap-Geronggong-Jagus East (GKGJE) deep-water offshore project. This accomplishment marks a significant step forward in Shell’s ongoing deep-water operations in Malaysia.
The newly produced oil is being transported to the existing Gumusut-Kakap semi-submersible floating production system (GK-Semi FPS), stationed off the coast of Sabah. As the operator of the project, SSPC manages a sophisticated operation that includes a subsea tie-back crossing the Malaysia-Brunei border. This tie-back consists of three producer wells and one water injection well.
Located at a depth of 1,200 meters, the Gumusut-Kakap project is Shell’s first deep-water venture in Malaysia, with production originally commencing in 2014. The successful launch of phase four is expected to play a crucial role in Shell’s global upstream strategy, contributing to an anticipated peak production of around 500,000 barrels of oil equivalent per day (boepd) from new projects scheduled between 2023 and 2025.
Siti Sulaiman, Shell Malaysia’s country chair and senior vice president for integrated gas & upstream Malaysia, emphasized the significance of this milestone, stating, “This achievement highlights Shell’s commitment to innovating and executing projects that are not only safe and reliable but also sustainable in meeting the growing global energy demand.”
The GKGJE project is a collaborative venture, involving multiple partners including ConocoPhillips Sabah, Petronas Carigali, PT PERTAMINA Malaysia Eksplorasi Produksi, PTTEP Sabah Oil, and various companies from Brunei. In March 2021, Brunei and Petronas finalized a unitization agreement for the GKGJE fields, appointing SSPC as the operator of the unit.
The fourth phase of the project, which received its final investment decision in October 2022, is expected to reach an average production of approximately 21,000 boepd. This development follows the successful completion of earlier phases, with phase two concluded in 2019 and phase three achieving first oil in July 2022.
As SSPC continues to operate two key deep-water oil assets in Sabah – Gumusut-Kakap and Malikai – the launch of phase four further solidifies Shell’s leadership in Malaysia’s offshore energy sector and demonstrates its unwavering commitment to addressing global energy needs through sustainable and innovative practices.