Shell begins Gumusut-Kakap deep-water ops

PETALING JAYA: Sabah Shell Petroleum Co Ltd has started oil production from the Gumusut-Kakap floating platform off Sabah’s coast, the latest in a series of Shell deep-water projects.

The Gumusut-Kakap field is located in waters up to 1,200m deep and the platform is to reach an annual peak oil production of around 135,000 barrels a day at full capacity.

This floating platform is the latest addition to Shell’s strong portfolio of major deep-water projects.

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,” Shell Upstream International director Andrew Brown said in a press statement.

“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.”

He said 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 by Malaysia Marine and Heavy Engineering Sdn Bhd.

Shell Malaysia chairman Iain Lo said: “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%, operator), ConocoPhillips Sabah (33%), Petronas Carigali (20%) and Murphy Sabah Oil (14%).

Among Shell’s major deep-water projects around the world are its Mars B development in the Gulf of Mexico through the Olympus platform in February this year, the Bonga North West deep-water development off the Nigerian coast, and the Cardamom development in the Gulf of Mexico.

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