Shell, operator SapuraOMV Upstream achieve first gas in Malaysia
The operator of the Jerun field in Malaysia, SapuraOMV Upstream, has announced that first gas has been achieved. The field is located around 160 km north-west of Bintulu and 190 km northwest of Miri in Sarawak, Malaysia.
Using a central processing platform, Jerun will export gas through a new 80-km pipeline into the E11RB production hub for onward delivery. The Jerun platform is designed to produce up to 550 million cu ft of gas per day, with condensate production of 15,000 barrels per day during peak production.
“Gas is an important fuel for Malaysia and the world, providing a secure form of energy for heating, cooling and power generation. We are delighted the venture has reached this milestone,” said Zoë Yujnovich, Shell’s Integrated Gas and Upstream Director.
Shell plc has a 30% equity stake in the field, through its Malaysian subsidiary, Sarawak Shell Berhad, and made a final investment decision on the development in 2021. Jerun is operated by SapuraOMV Upstream (40%) in partnership with Sarawak Shell Berhad (30%) and PETRONAS Carigali Sdn Bhd (30%). The Jerun gas field was discovered in 2015, under the SK408 production sharing contract.
Global demand for LNG is estimated to rise by more than 50% by 2040, as industrial coal-to-gas switching gathers pace in China, South Asian and South-east Asian countries. These countries are expected to use more LNG to support their economic growth, according to Shell’s LNG Outlook 2024.
