Sabah Shell Petroleum Co. Ltd. (SSPC), Shell Sabah Selatan Sdn Bhd (SSS), and Sarawak Shell Bhd (SSB) signed three production sharing contracts with PETRONAS to explore oil and gas offshore Sabah and Sarawak, Malaysia. SSPC and SSB will serve as operator.
The contracts comprise exploration of Blocks SK439/SK440 in shallow water, off the coast of Sarawak and exploration of Blocks SB-2W and SB-X in deepwater, off the coast of Sabah.
Shell also signed the joint operating agreements with co-venturers PETRONAS Carigali Sdn Bhd (PCSB) for the deepwater offshore Blocks SB-2W and SB-X and separately with Petroleum Sarawak Exploration and Production Sdn Bhd (PSEP) for the SK439/SK440 block.
The signing, in Kuala Lumpur, was part of a ceremony related to Malaysia Bid Round (MBR) 2021 hosted by Malaysia Petroleum Management, during which Petronas also signed a deal for Block SB412 in Sabah with PTTEP HK Offshore Ltd. and SapuraOMV Upstream (M) Sdn Bhd (OGJ Online, Mar. 23, 2022).
MBR 2022 launched Jan. 27, offering 14 exploration blocks, six clusters of discovered resource opportunities, and one late life asset cluster.
Apart from securing new exploration contracts, Shell is continuing investment in the country. SSPC, operator of the Gumusut-Kakap semi-submersible Floating Production System (GK-Semi FPS) offshore Sabah, has started work on Phase 3 of the Gumusut-Kakap development. The final investment decision (FID) was taken in August 2020.
Phase 3 involves the drilling of a four well tie back to the GK-Semi FPS. The project, which involves the drilling of two producer wells and two water injection wells, is expected to achieve first oil this year.