KUALA LUMPUR (Sept 1): Sarawak Shell Bhd (SSB), a subsidiary of Royal Dutch Shell Plc, has taken a final investment decision on the Timi gas development project offshore Sarawak.

In a statement, the company said the project — which will be undertaken with partners Petronas Carigali Sdn Bhd and Brunei Energy Exploration — involves the drilling of two wells.

Timi, which is a sweet gas field discovered in 2018, will be developed under the SK318 production sharing contract with SSB as the operator holding a 75% stake. Meanwhile, Petronas Carigali and Brunei Energy Exploration hold 15% and 10% stakes respectively.

The project will feature SSB's first wellhead platform in Malaysia that will be powered by a solar and wind hybrid renewable power system. The unmanned platform is about 60% lighter than a regular tender assisted drilling (TAD) wellhead platform.

“Timi, which is powered by a solar and wind hybrid power system, demonstrates Shell’s capabilities to innovate and deliver safe, reliable, and sustainable projects, in line with our commitment to achieve net-zero emissions by 2050 in step with society. Shell is pleased to be able to progress this project in a competitive and responsible manner, as part of the vital role upstream plays in delivering Shell’s strategy and in support of economic growth in Malaysia,” said Shell upstream director Wael Sawan.

Meanwhile, Ivan Tan, Chairman of Shell Malaysia and Senior Vice President Upstream Malaysia, said: “With over 100 years of operations in Malaysia, we are proud that our country continues to be a heartland and one of the nine core Upstream positions in the Shell Group. Timi reaffirms Shell’s commitment as a partner in powering progress for Sarawak and Malaysia and I would like to thank Petronas and our partners for their support in achieving this important milestone."

The development is designed to hit a maximum of 50,000 barrels of oil equivalent per day at peak production and will evacuate its gas to the Shell-operated F23 hub platform through a new 80km pipeline while supporting the future growth of the central Luconia area, off the coast of Sarawak.