Shell Launches Production At New Malaysian Field
Shell has begun commercial production at the Malikai deepwater field off the Malaysian coast, aiming for a peak output of 60,000 bpd. this is Shell’s second deepwater project in malaysia, once Gumusut-Kakap, that started operation back in 2014.
At the moment, according to Platts, Shell’s deepwater projects globally yield some 600,000 barrels of oil equivalent daily. the company has plans to raise this to 900,000 bpd by the early 2020s, and it's conjointly working on 2 new deepwater projects within the Gulf of mexico, that ought to boost deepwater output any.
According to a Reuters report, Shell has created 16 discoveries off the Malaysian coast within the last 28 months, using cutting-edge technology combining sonar, satellite imaging, and supercomputers. As a result, it's uncovered reserves estimated at a billion barrels of oil equivalent. It holds 9 development licenses in malaysia, about one of them in deep waters.
This combination of modern tech and decades of large-project development might prove invaluable for Shell because it adjusts to an environment where it's getting harder and harder to search out large deposits of oil and gas.
In the last 10 years, according to a Wood Mackenzie report, the speed of successful discoveries in upstream exploration has dropped well. This has been a part of the reason, along with low costs, that big Oil has started turning to smaller, faster-return projects.
Still, large projects haven't completely born out of favor, that is why technological advancements are coming in terribly handy, according to Shell’s Ceri Powell, head of exploration, in pinpointing the exact locations of the deposits and reducing the risks related to discoveries that are away from land and shallow waters.
The uptick in oil costs ought to offer further motivation for investing in such projects, especially since Shell has not yet pacified its shareholders completely when the quitting of its Arctic project, wherever it poured US$7 billion. The impairment hit its balance sheet hard because it happened amid the oil price crisis that, several believe, brought about a new normal for oil prices.