GKGJE oil project : Shell takes FID on phase 4 of deepwater oil development in Malaysia

Sabah Shell Petroleum Company (SSPC), a subsidiary of Shell has taken a final investment decision (FID) on the Phase 4 development of the Gumusut-Kakap-Geronggong-Jagus East deepwater oil field project (GKGJE oil project), off the coast of Sabah, Malaysia.

Located in water depths of 1,200 meters, the Gumusut-Kakap field entered into production in 2014 through the Gumusut-Kakap semi-submersible floating production system (GK-Semi FPS), for which Sabah Shell Petroleum Company is the operator.

Expected to produce first oil in late 2024, phase 4 of the GKGJE oil project will be a subsea tie-back to the GK-Semi FPS and involves drilling of four wells.

Ivan Tan — Chairman of Shell Malaysia and Senior Vice President for Upstream Malaysia, commenting on the GKGJE oil project phase 4, said: “Taking FID for GKGJE Phase 4 reaffirms Shell’s continued commitment to deliver competitive and sustainable projects to meet the world’s energy demands. I would like to thank PETRONAS, our co-venturers and the government for their support in achieving this milestone.”

Phase 3 of the GKGJE oil project, consisting of two oil producers and two water injection wells, was brought online on 31 July 2022. It was undertaken to enhance the recoverable oil volumes from the field.

Ivan Tan said: “We are pleased to be able to achieve 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.”

Shell Sabah Selatan Sdn. Bhd, ConocoPhillips Sabah, PETRONAS Carigali Sdn. Bhd., PTTEP Sabah Oil, PT PERTAMINA Malaysia Eksplorasi Produksi, and others are the joint venture partners of the GKGJE oil project.