Shell Invests in Phase 4 of the GKGJE Deepwater Development

Sabah Shell Petroleum Company Ltd (SSPC) announced it has taken a final investment decision (FID) on Phase 4 of the Gumusut-Kakap-Geronggong-Jagus East (GKGJE) deepwater offshore development project, with its co-venturers.

SSPC is the operator of the Gumusut-Kakap semi-submersible Floating Production System (GK-Semi FPS) located off the coast of Sabah, offshore Malaysia. GKGJE Phase 4 development is a subsea tie-back project that is expected to achieve first oil in late 2024. It involves the drilling of four wells and ties back to the GK-Semi FPS.

“Taking FID for GKGJE Phase 4 reaffirms Shell’s continued commitment to deliver competitive and sustainable projects to meet the world’s energy demands. I would like to thank PETRONAS, our co-venturers and the government for their support in achieving this milestone,” commented Ivan Tan, Chairman of Shell Malaysia and Senior Vice President for Upstream Malaysia.

GK Phase 3 Achieves First Oil Delivery end July 2022
On a related note, first oil delivery for an earlier phase of the project, Phase 3, was achieved on schedule earlier, on July 31, 2022. Phase 3 consists of two oil producer and two water injection wells to enhance the recoverable oil volumes from the field.

Tan said, “We are pleased to be able to achieve first oil from GK Phase 3 on schedule. This has been a truly remarkable team effort to overcome disruptions presented by the COVID-19 pandemic.”

Located in water depths of 1,200 meters, Gumusut-Kakap was the first deepwater offshore project for Shell in Malaysia and began production via the GK-Semi FPS in 2014.

The GKGJE project is a joint venture among Sabah Shell Petroleum Company Ltd and Shell Sabah Selatan Sdn. Bhd, ConocoPhillips Sabah Ltd., PETRONAS Carigali Sdn. Bhd., PTTEP Sabah Oil Limited, PT PERTAMINA Malaysia Eksplorasi Produksi and others.