by Ronnie Teo firstname.lastname@example.org.
Posted on September 8, 2014, Monday
MIRI: Malaysia remains a key upstream source for Royal Dutch Shell plc (Shell) as exemplified by 10 new gas discoveries so far in 2014, the highest of its kind in years.
This affirmed the group’s position as the largest gas producer in the country from fields offshore Sarawak which produces almost 50 per cent of the country’s gas.
Shell’s exploration and production division explores and extracts oil and gas resources in Sabah and Sarawak. It also serves as a contractor to Petroliam Nasional Bhd (Petronas) via 19 production sharing contracts (PSCs) as of August 2014.
Two of its recent gas discoveries include the Marjoram-1 well located some 180 kilometres offshore Sarawak in Block SK318 as well as in the Rosmari-1 in the same block.
Shell Upstream International director Andrew Brown told the media that Malaysia is a country “where you find almost all of the aspects of Shell,” from upstream to downstream processes.
“Malaysia is our heartland country, it has always been and will most likely be for a very long time. This heartland exploration has really delivered for us,” Brown told the media during his recent visit here.
“Over the past five years, it delivered some 400 million barrels of oil equivalent (BOE). As at end-August, we already have 260 million BOE, which significantly added value to our equity positioning.”
Brown reiterated among other pioneering projects by Shell here include the Shell Middle Distillate (SMDS) facility in Bintulu which turns gas into liquid products and is the first of its kind in the world.
“We took that technology and we built it in Qatar that is 10 times the size of (that in) Bintulu, and that plant is operating very efficiently,” he enthused. “This pioneering SMDS project in Bintulu gave us the experience and competence to allow us to make that big step.”
Meanwhile, Brown also spoke of Shell’s recent venture into deepwater exploration and production offshore Sabah, particularly in the Gumusut Kakap deepwater field and Malikai field.
“We will be starting up that project soon, and then ramp it up over a period of time to its full production capacity of a 135,000 barrels a day,” he affirmed, but declined to provide a date.
“Significant credit should be given to Malaysia for this field. When we lifted the topsides onto the hull, it was the largest lift anywhere in the world.
“It is something to be proud of, happening here in Malaysia, and I think it really shows the partnership that we have between Shell and Petronas and Malaysia. It also shows the pioneering spirit of what we can do when we work together.
“Beyond that, we’ve got the Malikai project which will be the first tension line platform in Malaysia — again another pioneering project for the group”, he commented.