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.
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.
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.
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.
October 23, 2016
Dateline 2016-09-12, Offshore:
Shell recently celebrated several major milestones for Malikai as it moves closer to entering production, when it will become the company’s second operated deepwater project in Malaysia after Gumusut-Kakap.
In June, the Technip-Malaysia Marine and Heavy Engineering (MMHE) joint venture (TMJV), contracted by Shell in February 2013, concluded onshore fabrication and commissioning operations. The 27,500-metric ton TLP then began its 1,400-km (870-mi) excursion from the MMHE West fabrication yard at Pasir Gudang in Peninsular Malaysia to the Malikai field, which lies in the South China Sea some 100 km (62 mi) off Sabah.
The TLP was transported by the Dockwise heavy-lift vessel White Marlin, according to fellow contractor InterMoor, which was responsible for the marine aspects of its float-off and tow.
These milestones behind it, a spokesperson for Shell based in Kuala Lumpur recently told Offshorethat it anticipates first oil in 2017.
September 23, 2016
Dateline 2016-08-11, The Star:
Shell Malaysia will invest RM125mil over the next 10 years to fund Malaysian talent innovation and competitiveness, says Chairman Datuk Iain Lo.
“We still have much to contribute towards developing Malaysia’s energy resources and exploration, demonstrate our commitment to the local oil and gas industry.
“That is not all. We can think of no better or fulfilling way to make the future together with Malaysia than through the exponential impact of individual Malaysians,” he said.
August 5, 2016
Dateline 2016-06-25, NST:
In the current environment of prolonged low oil prices, dubbed the “lower for longer” era, players in the oil and gas (O&G) industry are defying the odds through collaboration. Returns may be less than favourable, but industry players are staying focused on deep-water exploration and production activities, albeit higher costs involved in initial stages for such ventures. Shell Malaysia chairman Datuk Iain Lo said the deep-water business was under pressure, like other segments in the industry, and this called for collaboration among O&G industry players in order to remain sustainable. “Collaboration is important as it brings together the best capabilities and encourages assumptions to be challenged and boundaries to be pushed. “Such effective collaboration doesn’t happen overnight. It requires a long-term commitment from the parties involved but it allows us to jointly achieve something we wouldn’t be able to do alone.