Shell expects three project start-ups offshore Malaysia

March 12, 2021
Shell has issued updates on its current upstream development programs in its annual report.

Offshore staff

THE HAGUE, the Netherlands – Shell has issued updates on its current upstream development programs in its annual report.

Offshore Sarawak, the company expects first oil and gas this year from Phase 2 of the E6 project in the SK308 PSC, and first gas from the Pegaga field in block SK320 by 4Q.

Most of the gas produced offshore Sarawak heads to Malaysia LNG and Shell’s gas-to-liquids plant in Bintulu.

Drilling started last year on Phase 2 of the Malikai project offshore Malaysia, and first oil should follow later in 2021.

Shell has a 16.8% interest in the North Caspian Sea production-sharing agreement which includes the giant Kashagan field in the Kazakh sector of the Caspian Sea.

The Phase 1 development should deliver plateau oil production capacity of around 66,000 boe/d (Shell’s interest) this year, with potential for further increases under later phases.

Last summer, Allseas’ Pioneering Spirit removed Shell’s Brent Alpha topsides from the UK northern North Sea, with Heerema Marine Contractors’ Sleipnir vessel subsequently extracting the upper portion of the Brent Alpha jacket.

In July 2020, the UK government approved the Brent Alpha decommissioning program, including derogation to leave in place the Brent Alpha steel jacket footings.

Shell expects a decision before mid-year on proposed derogations to leave in place each of the gravity-based concrete installations serving Brent Bravo, Charlie, and Delta.

Last November, the company agreed to farm out part of its 30% stake in the deepwater round 1.4 block 4 exploration license offshore Mexico to CNOOC. However, the transaction remains subject to regulatory approval.

In Brazil’s Campos basin, Shell was awarded a 100% interest in block C-M-757 last December under the National Petroleum Agency (ANP) permanent offer round, again awaiting ratification.

Also last year, the company agreed to sell its 23% interest in the FPSO P-71, and the deal should be completed shortly.