Shell PLC and its partners have begun producing petroleum in the Gumusut-Kakap-Geronggong-Jagus East (GKGJE) Phase 4 deepwater project on the border of Malaysia and Brunei.

The consortium expects phase 4 to average 21,000 barrels of oil equivalent a day. The development consists of three oil production wells and one water injector. Two of the four wells are in Malaysia and the other two are in Brunei. The Gumusut and Kakap fields are in Malaysia while the Geronggong and Jagus-East fields are in Brunei.

“GKGJE Phase 4 contributes towards Shell’s global commitment to bring onstream new upstream projects between 2023 and 2025, that will together deliver an additional 500,000 barrels of oil equivalent per day at peak production”, Shell said in a statement on its Malaysia website.

GKGJE is a joint venture of British energy giant Shell, Houston-based ConocoPhillips, Malaysia’s state-owned Petroliam Nasional Bhd. (Petronas), Thailand’s state-owned PTT Exploration and Production Public Co. Ltd., Indonesia’s state-owned PT Pertamina (Persero) and Housto-based Murphy Oil Corp.

“This event marks another milestone in the cross-border collaboration between Malaysia and Brunei, reinforcing regional cooperation in deepwater oil production”, Petronas said separately.

“Led by the Unitization Management Committee - a joint effort between MPM [Malaysia’s upstream regulator] and Brunei’s National Unitization Secretariat - the collaboration streamlined policies, optimized logistics and enhanced operational efficiency, setting a new benchmark for cross-border petroleum activities”, it added.

Phase 4 output flows to the existing Gumusut-Kakap semi-submersible floating production system off the coast of Sabah.

Gumusut-Kakap, located in water depths of 1,200 meters (3,937.01 feet), started up 2014 as Shell’s first deepwater project in Malaysia. Its second and third phases achieved first oil August 2019 and July 2022 respectively. Phase 2 developed four additional tieback wells while phase 3 consisted of two oil producer and two water injection wells.

In March 2021, Brunei’s National Unitization Secretariat and Petronas signed an agreement on the terms of the unitization of the GKGJE fields’ oil and gas discoveries in Borneo, an island that Brunei and Malaysia share with Indonesia. Sabah Shell Petroleum Co. Ltd. was appointed as operator of the GKGJE unit area.

In another Malaysian project, Shell and its partners put onstream the Jerun gas field last year.

Located about 160 kilometers (99.4 miles) off the coast of Sarawak state, on the Malaysian side of Borneo, the development targets to produce 550 million cubic feet per day.

Former operator SapuraOMV, which held a 40 percent stake, discovered the Block SK408 field 2016 after a two-year drilling campaign that opened up nine wells. TotalEnergies SE took over the block last year by acquiring SapuraOMV, a joint venture between local player Sapura Energy Bhd. and Austria’s state-backed OMV AG. Sarawak Shell Bhd. and Petronas Carigali Sdn. Bhd. each owns 30 percent in the block.

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