Oil & Gas

Production work began with the discovery of a significant gas reserve, 9 years after its announcement and 3 years after the final investment decision to develop it, according to information from the Washington-based Specialized Energy Platform.

The Jerun field, discovered in 2015 in Malaysia and operated by Sapura OMV Upstream with a 40% stake, has the remaining interest split equally between Sarawak Shell Berhad and Petronas Carigali. Developers, particularly Shell's Malaysian arm, are banking on the field's production to bolster their gas portfolio, leveraging future demand for transitional fuels to increase sales and supply the global market.

Located 160 kilometers northwest of Bintulu, Sarawak, the Jerun field includes facilities such as a processing platform and a transmission line to the production center. The platform aims to reach peak production of 550 million cubic feet per day of gas and 15,000 barrels per day of condensate. Initial gas flows have already been achieved, according to the field's operator, Sapura OMV Upstream, as quoted by Shell on its website on July 12, 2024.

The development project for the Jerun field, which has recoverable reserves of approximately 2.1 trillion cubic feet of gas and 60 million barrels of oil and condensate, involves transporting gas flows from the platform to an E11RP hub via a new 80-kilometer pipeline. The hub supplies gas to customers in Bintulu, including Malaysia LNG, to meet domestic demand and support Asian demand. This development aligns with Shell's strategy to strengthen its presence off the coast of Sarawak and contribute to energy transition efforts both locally and globally.