Political stability may be behind Shell’s recent shift to Sarawak, says analyst

November 14, 2020

Dateline 2020-10-25, FMT:

An analyst believes Shell’s decision to downsize its operations in Sabah and move its personnel into Sarawak was partly driven by the political stability in the latter.

Sociopolitical analyst Awang Azman Pawi said the stability of the state government under the leadership of Chief Minister Abang Johari Openg has managed to instill foreign and local investors’ confidence in Sarawak.

“This has (particularly) attracted foreign investors to pump more investments into Sarawak and this can also be attributed to this latest move by Shell (in Sabah),” he told FMT.

“The repositioning of Shell’s focus (back) to Miri is because Sarawak is seen to be having a clearer state policy as well as better facilities. This exudes confidence that the state is prepared to further develop and move forward in the oil and gas industry.”

According to Awang Azman, Sarawak’s determination in defending its rights by being bold enough to stand up to Putrajaya on issues pertaining to oil and gas was also another consideration.


Sabah’s oil and gas dealt a severe blow by Shell

November 12, 2020

IGL is ready to step into the void, using the concept community owned entities (COE) to bring wealth to the local landscape. I would have called it community owned commercial kickstarters, but the acronym would have been hilaaaariuos.

Dateline 2020-10-23, The Malaysian Insight:

SHELL’S announcement on October 15 that the Plaza Shell Office at Kota Kinabalu will be closed with a relocation of all Sabah staff to the new Miri headquarters in 2021 was received with unceremonious silence.

The Kota Kinabalu office was set up in November 2015 with promises of Shell’s significant presence, strategic partnership and offer of measurable progress for the Sabah state. This change of commitments, a sad truth on change of events, draws much reservation, suspicion and unveils unprecedented break of promises from Shell to Sabah, its people and communities.

The well-set and progressive 200 Shell staff occupying four floors of the 14-storey Plaza Shell, a distinguished landmark in Kota Kinabalu being strategically located in the city’s business district may see the last of its pivotal presence very soon. Their lives, sadly, may never be the same again.


Shell Presses Ahead with Malikai Phase 2

March 14, 2020

Dateline 2020-01-13, OE:

Oil giant Shell has made a decision to invest in the second phase of its Malikai deepwater development offshore Malaysia.

In an announcement on Monday, Shell’s Malaysian subsidiary Sabah Shell Petroleum Company, the operator of the Malikai Tension-Leg Platform (TLP) located offshore Sabah, said the second phase would involve the drilling of two additional oil-producing wells and four water injection wells to enhance Malikai’s expected recoverable oil volumes.

The company said the move was is part of Shell’s continued investment in the country’s deepwater potential, and was expected to contribute to Malikai’s production in the second quarter of 2021. The development deploys the same single-combo riser technology that was used for the first time during Malikai Phase 1. The company did not provide the financial details of the project.


Shell recognises partners at Shell Malaysia Safety Awards 2018

September 27, 2018

Dateline 2018-07-11, Borneo Post:

Shell Malaysia recognises the safety efforts of its business partners and contractors for their top safety leadership during the 11th Shell Malaysia Safety Awards held towards the end of June.

More than 200 guests comprising of business partners and contractors to Shell attended the recent Shell Malaysia Safety Awards (SMSA) to appreciate and recognise safety leaders within the industry. The gala dinner was hosted by Datuk Iain Lo, chairman of Shell Companies in Malaysia.

“We are now entering the fifth year of the SMSA and I am proud that this event is going from strength to strength, mainly because of the continuous partnership and support from our business partners and contractors.


Shell completes Malaysia LNG Tiga equity sale

August 27, 2018

Dateline 2018-06-20, Oil & Gas Technology:

Shell Gas Holdings (Malaysia), a subsidiary of Royal Dutch Shell, announced today that it has completed the sale of its 15 per cdent shareholding in Malaysia LNG Tiga Sdn Bhd (MLNG Tiga) to the Sarawak State Financial Secretary (SFS) for an agreed consideration of $750 million.


Shell excel in oil extraction from Sabah deepwaters

December 19, 2017

Is this an advertorial?

Dateline 2017-11-07, NST:

As Sabah contributes about 50 per cent of the country’s oil production and with 60 per cent of production in the state comes from Shell, the oil company hopes to keep oil production competitive and growing sustainably in the next years to come.

Sabah Shell petroleum company general manager Ian Lim said Shell is doing well in oil production performance over the years, particularly in Sabah deep water.

“Within the Shell group, we compete very well. One of the things we are proud of is that in a lot of internal conversation, whenever we talk about business, we talk about which team and asset is producing well.

“The word Sabah deepwaters shows up and it’s really a proud moment as well as recognition to the team and where we are at. Of course, there is still improvement to be made but Shell is on (the right) track,” he said.


Shell loses $254m court case

March 18, 2017

Dateline 2017-02-16, EnergyVoice:

Kuala Lumpur Regional Centre for Arbitration awarded MISC $254.4million in its ruling.

MISC had filed an arbitration proceeding against Sabah Shell in September last year. The firm sought resolution of contractual disputes covering claims for outstanding additional lease rates, payment for completed variation works and other associated costs.

“This adjudication decision is expected to have a positive impact on the earnings per share, gearing and net assets per share of MISC for the financial year ending 31 December 2017 onwards,” MISC said.

The $254million will be paid as increased day rates under the pair’s lease agreement for the construction and leasing of the Gumusut-Kakap semi-floating production system used for the production of crude oil.

 


In the waters off Malaysia Shell finding gas quickly and cheaply

January 21, 2017

Dateline 2016-12-14, The Star:

In the waters off Malaysia, Royal Dutch Shell is finding gas quickly and cheaply to replenish depleting fields where only a few years ago geologists had lost hope of discovering any new reserves.

The Anglo-Dutch group is combining the latest technology with the wisdom of industry veterans to unlock new oil and gas deposits where it already operates, usually within 20 km (12 miles) of existing platforms.

The result has been a string of finds which, while modest in size, can generate cash rapidly to suit an era of drastically reduced exploration budgets across the energy industry.

After a costly flop in Alaska, Shell has turned away from giant “frontier” projects, focusing instead on exploring closer to home, such as in Malaysia where it has been producing oil for more than a century. Many of its rivals are following suit.

“With new data, new seismic and new brain power you can find extraordinary amount of hydrocarbons for the future,” Ceri Powell, Shell’s head of exploration, told Reuters.

Analysts say the industry will still need large discoveries in areas where the risk of failure is greater, but the cheaper and easier approach is paying dividends in the short term.


Shell starts oil production from Malikai deep-water platform in Malaysia

January 19, 2017

Dateline 2016-12-14, NST:

Shell has started oil production from the Malikai Tension-Leg Platform (TLP), located 100-kilometres off the coast of Sabah.

In a statement Wednesday, the company said Malikai is the first deep-water TLP in Malaysia and the first Shell TLP outside of the Gulf of Mexico.

Located in waters up to 500 metres deep, Malikai is Shell’s second deep-water project in Malaysia, following the successful start-up of the Gumusut-Kakap platform in 2014.

Malikai, which is expected to have a peak production of 60,000 barrels per day, is a joint venture between Shell (35 per cent, as an operator), ConocoPhillips Sabah Ltd (35 per cent) and Petronas Carigali Sdn Bhd (30 per cent).

The project features a cost-effective platform design and a unique, industry-first set of risers, or pipes that connect the platform to the wells for oil production, which required fewer drilling materials and lower costs.

 


Hibiscus to buy Shell’s operatorship of four oil fields offshore Sabah

November 25, 2016

And that settles my thoughts as to when Hibiscus was going to spend its money, and who would want to buy the Shell Sabah blocks.

Dateline 2016-10-12, The Star:

Shell has reached an agreement to sell its 50% equity interest in the 2011 North Sabah enhanced oil recovery (EOR) production sharing contract (PSC) to Hibiscus Petroleum Bhd’s indirect unit SEA Hibiscus Sdn Bhd for US$25mil (RM104.8mil).

The amount excludes post completion adjustments and reimbursements to Shell.

Currently, Sabah Shell Petroleum Co (25%) is the operator, partnering with Shell Sabah Selatan (25%) and Petronas Carigali Sdn Bhd (50%) in the PSC, which includes the Labuan Crude Oil Terminal, and the fields of St Joseph, South Furious, SF30 and Barton, all located offshore Sabah.

Total oil production (on a 100% PSC basis) averaged 18 kilobarrels (kbbls) per day last year, according to statements from Shell and Hibiscus.