KUCHING, March 23: Sabah Shell Petroleum Company Limited (SSPC), Shell Sabah Selatan Sdn Bhd (SSS), and Sarawak Shell Bhd (SSB) have signed three Production Sharing Contracts (PSCs) with Petroliam Nasional Berhad (Petronas) to explore oil and gas offshore Sabah and Sarawak as well as commence work on the Gumusut-Kakap Phase 3 development.
Under the terms of the agreement, SSPC and SSB will operate the exploration initiatives, which include the exploration of blocks SK439/SK440 in shallow water off the coast of Sarawak and SB-2W and SB-X in deep water off the coast of Sabah.
According to a press release, Shell Malaysia chairman and senior vice-president of Upstream Malaysia, Ivan Tan, signed the agreement in the presence of Shell’s executive vice-president for Conventional Oil & Gas Upstream, Peter Costello.
Petronas was represented by its senior vice-president of Malaysia Petroleum Management, Mohamed Firouz Asnan.
“The signing of these PSCs marks another growth milestone for Shell in Malaysia. Our long and successful partnership with Petronas in Malaysia continues, as together we seek to provide the energy of today while funding the energy of tomorrow.
“I look forward to further successful collaboration on growing a sustainable energy industry in Malaysia,” said Costello.
Shell also signed Joint Operating Agreements (JOAs) with their co-venturers Petronas Carigali Sdn Bhd (PCSB) for the deep water offshore blocks SB-2W and SB-X, as well as with Petroleum Sarawak Exploration and Production Sdn Bhd (PSEP) for the SK439/SK440 block, at the same ceremony.
Shell continues to invest in its existing fields in Malaysia, in addition to securing new exploration PSCs.
Meanwhile, SSPC, the operator of the Gumusut-Kakap semi-submersible Floating Production System (GK-Semi FPS) off the coast of Sabah, has begun work on Phase 3 of the Gumusut-Kakap development.
In August 2020, the Final Investment Decision (FID) was made.
Phase 3 entails drilling a four-well tie back to the GK-Semi FPS. The project, which entails drilling two producer wells and two water injection wells, is expected to produce its first oil this year.
“The signing of these PSCs, together with the commencement of Phase 3 of the Gumusut-Kakap development, demonstrate Shell’s continued commitment to the country and we will work to deliver these projects in a safe and responsible manner.
“I would like to thank Petronas and all our partners for their confidence and support, and look forward to further successful collaboration in Malaysia,” said Tan. — DayakDaily
