Kuala Lumpur − Sabah Shell Petroleum Company Ltd (SSPC) announced it has taken a final investment decision (FID) on Phase 4 of the Gumusut-Kakap-Geronggong-Jagus East (GKGJE) deepwater offshore development project, with its co-venturers.
In a statement on Monday, Shell said that GKGJE Phase 4 development is a subsea tie-back project that is expected to achieve first oil in late 2024. It involves the drilling of four wells and ties back to the GK-Semi FPS.
“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,” commented Ivan Tan, Chairman of Shell Malaysia and Senior Vice President for Upstream Malaysia.
Phase 3
First oil delivery for an earlier phase of the project, Phase 3, was achieved on schedule earlier, on July 31, 2022. Phase 3 consists of two oil producer and two water injection wells to enhance the recoverable oil volumes from the field. Once fully completed in Q1 2023, the four wells will add around 25,000 barrels per day to GK’s existing production capacity.
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.”
Located in water depths of 1,200 meters, Gumusut-Kakap was the first deepwater offshore project for Shell in Malaysia and began production via the GK-Semi FPS in 2014.
Sabah Shell Petroleum Co. Limited (SSPC) is the operator of the GK project, in partnership with PETRONAS Carigali Sdn Bhd, ConocoPhilips Sabah Limited, PTT Exploration and Production Public Company Limited, and PT Pertamina Malaysia Eksplorasi Produksi.
