Anglo-Dutch supermajor Shell has completed the second development phase of its Gumusut-Kakap deep-water project off Sabah, East Malaysia.

The GK Phase 2 project involved drilling four more subsea wells that have been tied back to the semi-submersible floating production facility.

These four new wells will add combined peak production of 50,000 barrels per day of oil and allow Gumusut-Kakap to achieve the floater’s rated output capacity of 165,000 bpd.

The project, in water depths of up to 1200 metres, was Shell’s first deep-water project in Malaysia when it came into operation five years ago.

“I would like to congratulate the team for yet another successful delivery of an important project for us both in Malaysia and globally,” said Shell Malaysia vice president of upstream, Simon Durkin.

“Shell has been a pioneer in Malaysia’s exploration and production sector for more than a century and a global leader in deep-water exploration and production for more than 40 years.

“We are proud of our continued investment in Malaysia and utilising our global and local expertise to ensure the long-term sustainability of Malaysia’s energy resources,” he added.

The GK Phase 2 project has realised cost savings of more than 35% since Shell and its then partners took the final investment decision in the fourth quarter of 2017.

UK contractor TechnipFMC in March 2018 won the engineering, procurement, construction and installation contract for Gumusut-Kakap Phase 2.

The workscope involved the supply and installation of equipment including the subsea production system, umbilicals and flowlines.

The four new wells were drilled by Seadrill’s drillship West Capella while Fugro’s multi-purpose vessel Atlantis Dweller was involved in the installation of the subsea trees.

The current co-venturers in Gumusut-Kakap include operator Shell, ConocoPhillips, Petronas Carigali and PTTEP.

Produced crude from Gumusut-Kakap is transported to the Sabah Oil & Gas Terminal onshore at Kimanis via a 200-kilometre pipeline.

Shell earlier said that at its peak Gumusut-Kakap would account for 25% of Malaysia’s total oil production.

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Shell completes Gumusut-Kakap phase 2