Shell makes oil discovery off Malaysia

A joint venture of Shell, Petronas Carigali, and ConocoPhillips has made an important oil discovery with their recent Gumusut-1 exploration well in deepwater block J in waters northwest of Sabah, Malaysia.

Mar 8th, 2004

A joint venture of Shell, Petronas Carigali, and ConocoPhillips has made an important oil discovery with their recent Gumusut-1 exploration well in deepwater block J in waters northwest of Sabah, Malaysia.

The Gumusut-1 exploration well encountered a long gross oil column in excellent reservoir quality rock. Initial indications are that the Gumusut crude oil is light and of high quality. The JV drilled a vertical well and two sidetracks at the discovery well in 1 km of water and completed it in December 2003 after 80 days of drilling.

"The priorities are now to appraise the discovery and develop the field in a timely manner," Jon Chadwick, chairman of Shell Malaysia, said. "These are still early days for Gumusut, but this discovery is a key achievement. Development will require that state-of-the-art technologies are deployed."

The joint venture partners in block J are operator Shell Malaysia with 40% equity, ConocoPhillips 40%, and Petronas Carigali 20%.

(03/08/04)

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