Shell PLC, through its Malaysian subsidiary, Sarawak Shell Berhad, has announced the achievement of first gas at the Jerun gas field in Malaysia. The field, located off the coast of Sarawak, is operated by SapuraOMV Upstream Sdn Bhd, with Shell holding a 30% equity stake. The Jerun platform is designed to produce up to 550 million cubic feet of gas per day, with condensate production of 15,000 barrels per day during peak production.
The gas will be exported through a new 80-km pipeline into the E11RB production hub, for onward delivery to Bintulu based customers including Malaysia LNG. Zoë Yujnovich, Shell’s Integrated Gas and Upstream Director, expressed Shell's enthusiasm, stating, "Gas is an important fuel for Malaysia and the world, providing a secure form of energy for heating, cooling and power generation. We are delighted the venture has reached this milestone."
The Jerun gas field was discovered in 2015, under the SK408 production sharing contract. Shell's commitment to deliver upstream and integrated gas projects coming on stream between 2023 to 2025, with a total peak production of greater than 500,000 barrels of oil equivalent per day, is expected to be supported by the Jerun field. Additionally, Shell believes LNG will play a critical role in the energy transition, replacing coal in heavy industry and power generation, and providing the flexibility the power system needs as renewable generation grows rapidly.
The Jerun gas field is operated by SapuraOMV Upstream (40%) in partnership with Sarawak Shell Berhad (30%) and PETRONAS Carigali Sdn Bhd (30%). The achievement of first gas at the Jerun field marks a significant milestone for Shell in its commitment to supporting Malaysia's economic progress and energy transition efforts.