Sabah Shell Petroleum Company (SSPC), a subsidiary of Shell, has successfully commenced oil production from the fourth phase of the Gumusut-Kakap-Geronggong-Jagus East (GKGJE) deep-water offshore project.
This milestone marks a significant advancement in Shell’s deep-water operations in Malaysia.
The newly produced oil from phase four is being transported to the existing Gumusut-Kakap semi-submersible floating production system (GK-Semi FPS), located off the coast of Sabah, Malaysia.
SSPC, as the project operator, oversees a complex operation that includes a subsea tie-back spanning the Malaysia-Brunei border, comprising three producer wells and one water injection well.
Situated at a depth of 1,200 metres, the Gumusut-Kakap project holds the distinction of being Shell’s inaugural deep-water venture in Malaysia, with initial production dating back to 2014.
This latest phase is expected to contribute significantly to Shell’s global strategy of launching new upstream projects, which collectively aim to add approximately 500,000 barrels of oil equivalent per day (boepd) at peak production between 2023 and 2025.
Siti Sulaiman, Shell Malaysia’s country chair and senior vice-president for integrated gas & upstream Malaysia, expressed pride in this achievement, stating: “This milestone underscores Shell’s persistent dedication to innovating and executing safe, dependable, and sustainable projects that address current energy demands.”
The GKGJE project represents a collaborative effort involving several partners, including ConocoPhillips Sabah, Petronas Carigali, PT PERTAMINA Malaysia Eksplorasi Produksi, PTTEP Sabah Oil, and various Brunei-based companies.
In March 2021, Brunei and Petronas formalised a unitisation agreement for the GKGJE fields, appointing SSPC as the unit operator.
Phase four of the project, which received its final investment decision in October 2022, is projected to yield an average production of approximately 21,000 boepd.
This development follows the successful implementation of previous phases, with phase two completed 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 – this latest achievement reinforces Shell’s position as a leader in Malaysia’s offshore energy sector and demonstrates its commitment to meeting global energy demands through innovative and sustainable practices.
