Shell starts oil production from deepwater platform in Malaysia

Shell has started oil production from the Gumusut-Kakap floating platform off the coast of Malaysia.

The Gumusut-Kakap field is located in waters up to 1200 m deep. The platform is expected to reach an annual peak oil production of approximately 135,000 bpd, 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," commented 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 deepwater start-ups this year, driving returns and growth for shareholders.”

This floating platform is the latest addition to Shell’s strong portfolio of major deepwater projects. Assembling the vast structure, whose four decks total nearly 40,000 m², 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 pipeline.

The platform was built in Malaysia by Malaysian Marine and Heavy Engineering Sdn Bhd (MMHE).

Shell Malaysia Chairman Iain Lo added: “Shell is pleased to be able to play an active role in developing the nation’s deepwater resources and deepwater service industry. Deepwater 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.”

The Gumusut-Kakap project is a joint venture between Shell (33%), ConocoPhillips Sabah (33%), Petronas (20%), Murphy Sabah Oil (14%).

Adapted from press release by Katie Woodward

Read the article online at: https://www.oilfieldtechnology.com/drilling-and-production/08102014/shell-starts-oil-production-offshore-malaysia-1583/