Bernama Nov 4 04: Shell To Invest Another RM12 Bln In Malaysia: Shell which has been operating in Malaysia for the last 114 years and invested over RM70 billion in the last four decades plans to invest another RM12 billion from 2004 to 2008, said Chairman of Shell Malaysia, Datuk Jon Chadwick. (ShellNews.net)
JOHOR BAHARU, Nov 4 (Bernama) -- Shell which has been operating in Malaysia for the last 114 years and invested over RM70 billion in the last four decades plans to invest another RM12 billion from 2004 to 2008, said Chairman of Shell Malaysia, Datuk Jon Chadwick.
He said the company's continued investment in Malaysia was in no-small amount due to the favourable business climate cultivated by the government and the confidence of Petronas and other business partners.
"Shell Malaysia considers itself a full partner in Malaysia's progress," he said after a contract signing ceremony between Shell and Malaysia Shipyard and Engineering Sdn Bhd (MSE), here Wednesday.
The contract with an overall value of RM385 million was for the fabrication and upgrading of drilling and production topsides and jackets as well as offshore living quarters for Shell Malaysia's key gas facilities offshore Sarawak namely E11P-B, F13 W, SCK-A, E11LQ and F23.
Also present during the signing ceremony were Johor executive councilor for International Trade and Industry, Energy, Water and Communications Tan Kok Hong and senior officials from Petronas and Petronas Carigali.
Chadwick said the fabrication work for the project started in July this year and was estimated to be completed in 16 months.
He said the second E11 Production platform (E11P) was part of the RM2.8 billion E11 Hub project, the largest ongoing Shell upstream project in South East Asia.
Upon completion, the E11 Hub will be Shell Malaysia's largest offshore gas production platform with a capacity of 1,200 MMscf/d, an increase of 80 percent from its current capacity.
He said, 1,200 MMscf/d corresponds to 40 percent of total Shell Malaysia gas production, by far the country's largest producer and more than 20 percent of Malaysia's total gas production.
"This project is truly significant in ensuring security of gas supply to MLNG, the world's largest Liquefied Natural Gas Facility and our key gas customer in Bintulu, Sarawak. The E11P-B alone will provide about 85 percent of MLNG Satu's total processing capacity," he said.
Meanwhile, the F13W will enable production from the shallow Clastics field (where the first gas is expected next year) and eventually from the F13 field (with the first gas from East followed by West, post 2008).
The F23 rejuvenation is part of the current rejuvenation programme for Central Luconia platforms, said Chadwick.
The managing director and chief executive officer of MSE, Wan Yusoff Wan Hamat, said that all the projects were for the E11 Hub Development and Existing E11 Complex at Central Luconia gas field offshore Sarawak.
Since 1979 MSE has completed 19 of Shell's projects, he said.
Wan Yusoff said that with Malaysia now progressing in the development of deepwater fields with almost 20 fields being identified, the MSE was aggressively preparing itself to be a partner and a hub for deepwater development in the region.
"I ardently hope Shell Malaysia would be able to consider MSE as their partner in their deepwater development, opening more doors in the near future for more ventures and enhancing our business relations," he said.