By OGJ editors
HOUSTON, Mar. 9 -- Royal Dutch/Shell Group subsidiary Shell Malaysia Exploration & Production has reported what it is calling "an important oil discovery" on deepwater Block J northwest of Sabah, Malaysia.
Shell, operator of the block, said the recently drilled Gumusut-1 exploration well encountered "a long gross oil column in excellent reservoir quality rock." While saying it was too early to give quantitative volumetric estimates, Shell said in a statement released Monday: "Initial indications are that the Gumusut crude oil is light and of high quality."
The vertical discovery well, drilled in water 1 km deep, was completed in December 2003, following 80 days of drilling. Shell then drilled two sidetracks.
Shell Malaysia, with 40% equity, is partners on the block with ConocoPhillips 40% and
Petronas Carigali Sdn. Bhd., the exploration and production arm of Malaysia state oil firm Petronas, 20%.
Jon Chadwick, chairman of Shell Malaysia, said "The priorities are now to appraise the discovery and develop the field in a timely manner." He said that development would require deployment of state-of-the-art technologies. "These are still early days for Gumusut, but this discovery is a key achievement," he added.
In November Chadwick had said that Shell planned to drill 10 new wells, including Gumusut, to boost production in Malaysia and would commit a sizable investment in Malaysia during the next 5 years.
Murphy Oil Corp found first oil off Sabah, Malaysia in 2002 on nearby Block K—a 4 million acre area with reserves estimated at 400-700 million bbl. Murphy reported a significant discovery with its Kikeh Kecil No. 1 well in the southern part of Block K in almost 4,400 ft of water (OGJ Online, Oct. 15, 2002). Operator Murphy holds an 80% interest in Block K and adjoining Block H, with Petronas holding the remaining 20%.