Oil Flows from Shell’s Gumusut-Kakap Project
- Business & Finance
Shell has started oil production from the Gumusut-Kakap floating platform off the coast of Malaysia, the latest in a series of Shell deep-water projects.
The Gumusut-Kakap field is located in waters up to 1,200 metres (3,900 feet) deep. The platform is expected to reach an annual peak oil production of around 135,000 barrels a day, once fully ramped up. With oil production now under way, work on the gas injection facilities is continuing with an expected start-up during 2015.
“We are delighted to have reached this milestone with our partners,” said Andrew Brown, Shell Upstream International Director, “Gumusut-Kakap is our first deep-water development in Malaysia, and uses the best of Shell’s global technology and capabilities in deep water. The field is one of a series of substantial deep-water start-ups this year, driving returns and growth for shareholders.”
This floating platform is the latest addition to Shell’s strong portfolio of major deep-water projects. Assembling the vast structure, whose four decks total nearly 40,000 square metres, involved the world’s heaviest onshore lift. The project uses Shell Smart Fields® technology to carefully control production from the undersea wells to achieve greater efficiency. Oil is transported to the Sabah Oil and Gas Terminal onshore at Kimanis, Malaysia via a 200 km-long pipeline.
The project has allowed Shell to share deep-water expertise with Malaysian energy companies, assisting in the Malaysian government’s goal to create an offshore industry hub. The platform was built in Malaysia by Malaysian Marine and Heavy Engineering Sdn Bhd (MMHE).
Shell Malaysia Chairman Iain Lo said: “Shell is pleased to be able to play an active role in developing the nation’s deep-water resources and deep-water service industry. Deep-water resources are critical to Malaysia’s long-term energy security. The Gumusut-Kakap field is expected to contribute up to 25% of the country’s oil production.”
Gumusut-Kakap is the latest of more than 20 major deep-water projects that Shell has delivered around the globe. Shell began production from the Mars B development in the Gulf of Mexico through the Olympus platform in February this year. In August it announced the start of oil production from the first well at the Bonga North West deep-water development off the Nigerian coast. In September, Shell announced the start of production from the Cardamom development, the latest deep-water breakthrough in the Gulf of Mexico which is a high-value addition to the Shell’s pioneering Auger tension-leg platform.
The Gumusut-Kakap project is a joint venture between Shell (33%, operator), ConocoPhillips Sabah (33%), PETRONAS Carigali (20%), Murphy Sabah Oil (14%).
Press Release, October 08, 2014; Image: HMarine