SapuraOMV Upstream Achieves First Gas at Jerun Field Offshore Malaysia

SapuraOMV Upstream Achieves First Gas at Jerun Field Offshore Malaysia

(IN BRIEF) SapuraOMV Upstream Sdn Bhd has successfully started gas production at Malaysia’s Jerun field, where Shell plc holds a 30% stake through Sarawak Shell Berhad. Located offshore Sarawak, the field includes an integrated platform exporting gas via an 80-km pipeline to Bintulu. Peak production targets are 550 million cubic feet of gas per day and 15,000 barrels of condensate per day. Shell views Jerun as a strategic investment aligning with Malaysia’s energy needs and its global gas strategy, reinforcing its commitment to sustainable energy solutions.

(PRESS RELEASE) LONDON, 12-Jul-2024 — /EuropaWire/ — SapuraOMV Upstream Sdn Bhd, the operator of Malaysia’s Jerun field, has confirmed the commencement of first gas production. Shell plc holds a 30% equity interest in the field through its subsidiary, Sarawak Shell Berhad, having finalized its investment decision in 2021.

Located approximately 160 km northwest of Bintulu and 190 km northwest of Miri in Sarawak, Malaysia, Jerun features an integrated central processing platform. Gas from the field will be transported via a newly constructed 80-km pipeline to the E11RB production hub for delivery to customers in Bintulu, including Malaysia LNG. The platform is designed to produce up to 550 million cubic feet of gas per day, alongside 15,000 barrels of condensate per day during peak production.

Zoë Yujnovich, Shell’s Integrated Gas and Upstream Director, commented, “Jerun represents a strategic investment for Shell, enhancing our presence in Sarawak’s offshore region alongside operations at the Timi platform and ongoing Rosmari-Marjoram project.” She emphasized the importance of gas in Malaysia’s energy landscape and globally, supporting heating, cooling, and power generation needs.

Operated by SapuraOMV Upstream (40%), Jerun partners include Sarawak Shell Berhad (30%) and PETRONAS Carigali Sdn Bhd (30%). The project, discovered under the SK408 production sharing contract in 2015, aligns with Shell’s commitment to deliver significant upstream and integrated gas projects by 2025.

Notes to editors

• The Jerun gas field was discovered in 2015, under the SK408 production sharing contract.
• On Shell’s Capital Market Day in 2023, Shell committed to deliver upstream and integrated gas projects coming on stream between 2023 to 2025, with a total peak production of greater than 500,000 barrels of oil equivalent per day. Jerun is expected to contribute to this commitment.
• 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.
• Shell believes LNG will play a critical role in the energy transition, replacing coal in heavy industry. It also has a continued role in displacing coal in power generation, helping to reduce local air pollution and carbon emissions. LNG helps to provide the flexibility the power system needs, at a time when renewable generation is growing rapidly. Find out more in Shell’s Energy Transition Strategy 2024.

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SOURCE: Shell plc