- Shell PLC SHEL announced an investment decision in Malaysia's oil and gas sector. Deal terms were not disclosed.
- Sabah Shell Petroleum Co, a Malaysian unit of Shell, said it would invest in Phase 4 of the Gumusut-Kakap-Geronggong-Jagus East (GKGJE) deepwater offshore development project along with its partners.
- The GKGJE phase 4 development is a subsea tie-back project expected to achieve the first oil in late 2024.
- Last month, Shell announced plans to invest with Petronas to develop the Rosmari-Marjoram gas fields off the coast of Bintulu in the Malaysian state of Sarawak.
- The project is designed to produce 800 million standard cubic feet of gas per day, with gas production expected to start in 2026.
- Shell's partners in the GKGJE project include ConocoPhillips' COP Sabah Ltd, Petronas Carigali Sdn Bhd, PTTEP Sabah Oil Ltd, PT Pertamina Malaysia Eksplorasi Produksi, and others.
- Reuters report said GKGJE project will revive the declining output of Kimanis crude, Malaysia's flagship export grade. Kimanis production has fallen because of a lack of investment and technical issues at the Gumusut-Kakap and Malikai fields.
- Petronas also announced that the phase 3 project at the Gumusut-Kakap (GK) deepwater field achieved its first oil production on July 31.
- Two new oil producer wells and two water injector wells were drilled at the GK field.
- "Once fully completed in 1Q23, the four wells will add around 25,000 barrels per day to GK's existing production capacity," Petronas said.
- Price Action: SHEL shares are up 2.51% at $51.01 during the premarket session on the last check Monday.
- Photo Via Company
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Benzinga simplifies the market for smarter investing
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
Join Now: Free!
Already a member?Sign in
