Shell PLC subsidiary Sarawak Shell Bhd. (SSB) has let a contract to Samsung Engineering Co. Ltd. to build an onshore gas plant (OGP) in Bintulu, Sarawak, Malaysia, to process natural gas produced from the Rosmari-Marjoram project in Block SK318, about 200 km offshore Sarawak (OGJ Online, Aug. 26, 2014; Apr. 17, 2014).
As part of the $680-million contract awarded on July 12, Samsung Engineering will deliver engineering, procurement, construction, and commissioning (EPCC) for the proposed OGP, which will have a nameplate processing capacity of 800 MMcfd, the service provider said in a July 13 release.
Samsung Engineering—which participated in front-end engineering design (FEED) for the project—said it will complete the OGP in two phases, with a first phase of limited works to be carried out ahead of SSB reaching final investment decision (FID) on the project and second-phase works to follow after FID.
While SSB has yet to disclose a definitive timeframe for when it will take FID on the planned sour-gas processing plant, Samsung Engineering confirmed that, if approved, the OGP will be ready for startup by yearend 2025.
The proposed Rosmari-Marjoram development comes as the first phase of the Sarawak Integrated Sour Gas Evacuation System (SISGES) project, which will include an offshore platform as well as the OGP in Bintulu, Shell said in its latest annual report to investors.
With 75% equity in the SK318 production sharing contract (PSC), SSB serves as operator alongside partners PETRONAS Carigali Sdn Bhd (15%) and Brunei Energy Exploration (10%).
The partnership is also developing the Timi sweet gas project offshore Sarawak as part of the SK318 PSC (OGJ Online, Aug. 30, 2021).