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Shell announces new gas discovery in Malaysia

29/08/2014 by

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The discovery at Marjoram-1 in 800 metres of water in block SK318, follows the discovery of gas last April in the same block at the Netherlands group’s Rosmari-1 well.

Shell upstream international director Andrew Brown said: “Our strategy to expand our heartland areas through technologically advanced exploration is delivering tangible success in deep-water in Malaysia.”

Brown said: “We have a long history in the region, and the addition of new natural gas resources this year ensures we are able to continue to provide cost-effective, reliable, cleaner energy options for the future.”

Block SK318 is operated by Shell with an 85% stake. The remaining 15% is held Petronas Carigali International Sdn Bhd, a subsidiary of the Malaysian government-owned Petronas group.

Rosmari-1 was drilled to a total depth of 2,123 metres, encountering more than 450 metres of gas column, Shell said. The group did not give an estimate of the size of the Marjoram discovery.

According to the Malaysia Petroleum Resources Corporation (MPRC), Malaysia has to date some 28.35 billion barrels of oil (BBOE) reserves and about 1.2 per cent of the world’s natural gas reserves (2.35 trillion cubic metres) of proven reserves. Malaysia has a current production rate of 730,000 barrels per day of crude oil products. 

This article has been extracted from http://www.out-law.com/, please click on this link to read the article in full http://www.out-law.com/en/articles/2014/august/shell-announces-new-gas-discovery-in-malaysia/

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