Gumusut-Kakap

Location and Overview

The Gumusut-Kakap oil field is located in the deep waters of the South China Sea, straddling the maritime boundary between Malaysia and Brunei. Specifically, it is about 120 km off the coast of Sabah, Malaysia, in water depths of approximately 1,200 meters (3,937 feet).

Field Development

The Gumusut-Kakap project involves the joint development of two ultra-deepwater discoveries: the Gumusut field in Block J and the Kakap field in Block K. These fields were merged under a unitisation agreement signed by the partners in 2006.

Operators and Partners

• The operator of the Gumusut-Kakap field is Sabah Shell Petroleum Company, a subsidiary of Royal Dutch Shell, which holds a 29.05% interest.
• Other development partners include ConocoPhillips (29.05%), Petronas (16.8%), Brunei Contractors (16%), PTT Exploration and Production Public Company (PTTEP) (6.37%), and Pertamina (2.7%).

Production History

• The first oil production from the Gumusut-Kakap field began in November 2012 through an early production system, with the oil being tied back to the Murphy Sabah Oil-operated Kikeh production facility.
• A semi-submersible floating production system (FPS) started operations in October 2014.

Production Capacity and Infrastructure

• The semi-submersible FPS has a processing capacity of up to 150,000 barrels of oil equivalent (boe) per day and weighs more than 40,000 tons. It is designed to remain on station for 30 years.
• The field consists of 19 subsea wells tied back to the FPS. The topsides and hull of the facility weigh approximately 20,000 tons and 19,000 tons, respectively.
• Crude oil is exported through a 200 km-long, 18-inch diameter pipeline to the Sabah Oil and Gas Terminal in Kimanis, Sabah, Malaysia. Processed gas from the Kimanis plant is transported to the Petronas LNG Complex in Bintulu, Sarawak.

Phased Development

• Phase 1 & 2: The initial development involved the drilling of multiple wells, with phase two adding four additional wells. The first oil from these additional wells was produced in September 2019.
• Phase 3: This phase involved the drilling of two new oil production wells and two water injection wells. The first oil from this phase was achieved on July 31, 2022, and is expected to add around 25,000 barrels per day to the existing production capacity once fully completed in Q1 2023.
• Phase 4 (GKGJE): An expansion project, the Gumusut-Kakap-Geronggong-Jagus East (GKGJE) Phase 4, is currently in the construction stage and is expected to start in 2024.

Contractors and Service Providers

• Engineering and Construction: Malaysia Marine and Heavy Engineering (MMHE), a subsidiary of MISC, constructed the semi-submersible FPS. MISC also managed the full project scope and responsibility.
• Design and Consultancy: INTECSEA designed the hull, deck, and mooring system of the FPS. Technip provided detailed engineering services for the topsides of the FPS.
• Pipeline Installation: SapuraAcergy (now Sapura Energy) was contracted for the engineering, procurement, and installation of the oil export pipeline and other subsea infrastructure.
• Drilling: Maersk Drilling was contracted by Shell Malaysia to drill development wells, with the Maersk Viking drillship deployed for this purpose.
• Maintenance: BMT was awarded a three-year offshore Master Service contract to provide maintenance services for the Gumusut-Kakap and Malikai deepwater platforms.

Recoverable Reserves and Production

• The recoverable reserves of the Gumusut-Kakap project are estimated at 300 to 500 million barrels of oil equivalent.
• The field has recovered 66.02% of its total recoverable reserves as of recent data, with peak production achieved in 2016. Production is expected to continue until the field reaches its economic limit in 2038.

Economic and Strategic Significance

• The Gumusut-Kakap project is critical to Malaysia's oil production, especially as crude oil output from maturing fields is declining. Deepwater projects like this are essential for sustaining Malaysia's oil production.
• The project has contributed significantly to Malaysia's deepwater development capabilities, positioning the country as a regional hub for deepwater oil and gas activities.