Global and Regional MarketsNewsThe Offshore Frontier

Shell starts oil production from Gumusut-Kakap deepwater platform in Malaysia

Shell has started oil production from the Gumusut-Kakap floating platform off the coast of Malaysia, the latest in a series of Shell deepwater projects.

The Gumusut-Kakap field is located in waters up to 1,200 m (3,900 ft) deep. The platform is expected to reach an annual peak oil production of around 135,000 bbl/day, once fully ramped up. With oil production 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 deepwater development in Malaysia and uses the best of Shell’s global technology and capabilities in deepwater. 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 sq m, 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 deepwater 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.

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

Gumusut-Kakap is the latest of more than 20 major deepwater 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 deepwater development off the Nigerian coast. In September, Shell announced the start of production from the Cardamom development, the latest deepwater 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%) and Murphy Sabah Oil (14%).

Shell Smart Fields technology is a trademark of Shell Global.

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