Jerun Gas Field in Malaysia Celebrates First Gas Production

SapuraOMV Upstream Sdn Bhd, operator of Malaysia's Jerun field, has achieved a significant milestone with the commencement of first gas production. The field, in which Shell plc holds a 30% equity stake through its Malaysian subsidiary Sarawak Shell Berhad, reached this milestone following Shell's final investment decision on the project in 2021. This achievement underscores the collaborative efforts and strategic investments made to advance Malaysia's energy sector, contributing to increased domestic gas supply and supporting the region's economic growth and energy security objectives.

The site is situated approximately 160 kilometers northwest of Bintulu and 190 kilometers northwest of Miri, both in Sarawak, Malaysia. Jerun features an integrated central processing platform from which gas will be exported via a newly constructed 80-kilometer pipeline to the E11RB production hub. From there, the gas will be distributed to customers in Bintulu, including Malaysia LNG. The Jerun platform has been engineered to achieve a peak gas production capacity of 550 million cubic feet per day, alongside condensate production reaching 15,000 barrels per day at its peak operational output.

Zoë Yujnovich, Shell’s Integrated Gas and Upstream Director, described Jerun as a compelling investment for Shell, expanding their footprint in the significant Sarawak region offshore Malaysia. She noted Shell's existing operations in the area, including the Timi platform and the Rosmari-Marjoram project currently under construction. Yujnovich emphasized the critical role of gas as a secure energy source for Malaysia and globally, supporting heating, cooling, and power generation needs. She expressed satisfaction that the venture had achieved this milestone, highlighting Shell's commitment to advancing energy solutions in the region.

Shell has a deep-rooted and prosperous history in Malaysia, marked by significant achievements. With Malaysia Petroleum Management, PETRONAS, guiding the way, Shell maintains a steadfast commitment to bolstering the nation's economic advancement and facilitating its energy transition journey. This dedication is reflected in Shell's ongoing investments that prioritize competitiveness and resilience, aiming to contribute positively to Malaysia's sustainable development goals. By aligning strategic initiatives with local priorities, Shell continues to play a pivotal role in fostering economic prosperity and sustainable energy solutions, reinforcing its longstanding partnership with Malaysia and its people.

Jerun is operated by SapuraOMV Upstream (40%), alongside partners Sarawak Shell Berhad (30%) and PETRONAS Carigali Sdn Bhd (30%). This collaborative venture leverages diverse expertise to ensure efficient operations and maximize production capabilities, reinforcing a strong commitment to Malaysia's energy sector and economic growth.

The Jerun gas field, discovered in 2015 under the SK408 production sharing contract, represents a pivotal asset in Shell's strategic portfolio. Highlighted during Shell’s Capital Market Day in 2023, Shell outlined its commitment to bringing upstream and integrated gas projects online from 2023 to 2025, aiming for peak production exceeding 500,000 barrels of oil equivalent per day. Jerun is poised to significantly bolster this ambitious target. As global LNG demand is projected to surge by over 50% by 2040, driven by widespread industrial coal-to-gas transitions across China, South Asia, and Southeast Asia, Jerun’s output is strategically positioned to support these regions’ economic expansions, aligning with Shell’s LNG Outlook 2024.