Shell Makes Second Investment In Malaysian Oil & Gas Within Month

  • Shell PLC SHEL announced an investment decision in Malaysia's oil and gas sector. Deal terms were not disclosed.
  • Sabah Shell Petroleum Co, a Malaysian unit of Shell, said it would invest in Phase 4 of the Gumusut-Kakap-Geronggong-Jagus East (GKGJE) deepwater offshore development project along with its partners. 
  • The GKGJE phase 4 development is a subsea tie-back project expected to achieve the first oil in late 2024.
  • Last month, Shell announced plans to invest with Petronas to develop the Rosmari-Marjoram gas fields off the coast of Bintulu in the Malaysian state of Sarawak.
  • The project is designed to produce 800 million standard cubic feet of gas per day, with gas production expected to start in 2026.
  • Shell's partners in the GKGJE project include ConocoPhillips' COP Sabah Ltd, Petronas Carigali Sdn Bhd, PTTEP Sabah Oil Ltd, PT Pertamina Malaysia Eksplorasi Produksi, and others.
  • Reuters report said GKGJE project will revive the declining output of Kimanis crude, Malaysia's flagship export grade. Kimanis production has fallen because of a lack of investment and technical issues at the Gumusut-Kakap and Malikai fields.
  • Petronas also announced that the phase 3 project at the Gumusut-Kakap (GK) deepwater field achieved its first oil production on July 31.
  • Two new oil producer wells and two water injector wells were drilled at the GK field.
  • "Once fully completed in 1Q23, the four wells will add around 25,000 barrels per day to GK's existing production capacity," Petronas said.
  • Price Action: SHEL shares are up 2.51% at $51.01 during the premarket session on the last check Monday.
  • Photo Via Company
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