Jerun gas field commences production to boost Malaysia’s energy capabilities

SapuraOMV Upstream Sdn Bhd, the operator of the Jerun gas field in Malaysia, has successfully commenced gas production, marking a significant milestone. The field, which Shell plc holds a 30% stake in through its subsidiary Sarawak Shell Berhad, started operations following a final investment decision made in 2021.

Located approximately 160 kilometers northwest of Bintulu and 190 kilometers from Miri in Sarawak, the Jerun field boasts a central processing platform with an 80-km pipeline linked to the E11RB production hub. This strategic setup facilitates the export of gas to various Bintulu-based customers, including Malaysia LNG. At its peak, Jerun is expected to produce up to 550 million cubic feet of gas and 15,000 barrels of condensate daily.

Zoë Yujnovich, Shell’s Director of Integrated Gas and Upstream, highlighted the project’s strategic importance. “Jerun was a highly attractive investment for Shell, building on our interests in this important region off the coast of Sarawak, offshore Malaysia, where Shell operates the Timi platform and has the Rosmari-Marjoram project under construction,” she stated. Yujnovich emphasized the role of gas as a secure energy source for global needs such as heating, cooling, and power generation.

Shell’s commitment to Malaysia’s economic progress and energy transition is reinforced under the oversight of Malaysia Petroleum Management and PETRONAS. The company has been a pivotal player in the region, fostering substantial economic contributions and sustainable energy solutions.

The Jerun field is operated by SapuraOMV Upstream with a 40% stake, alongside partners Sarawak Shell Berhad and PETRONAS Carigali Sdn Bhd, each holding 30%. Discovered in 2015 under the SK408 production sharing contract, Jerun forms part of Shell’s broader strategy outlined during their 2023 Capital Market Day. The company aims to activate upstream and integrated gas projects between 2023 to 2025, targeting a total peak production exceeding 500,000 barrels of oil equivalent per day, with Jerun expected to significantly contribute to this goal.