Gorek Gas Development Project Success Story: Collaboration With Sarawak Shell And Sapura OMV Netted 33% In Project Cost Reduction

2020 Media Release - 1 Oct

Author: Mohd Farizan B Ahmad, M Nasuha B Alias, Project Governance, RDM, MPM

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The Gorek field achieved its first gas production on 24 May 2020.  

Sarawak Shell Bhd (Shell) and SapuraOMV embarked on a joint development project of the Gorek, Larak & Bakong Fields under the SK408 Production Sharing Contract (PSC) as part of a collaborative effort to maximise the economies of scale, especially for a small field like Gorek to be viable. This included undertaking a joint tendering exercise for pipelines and the engineering, procurement and construction (EPC) contracts. The collaboration also extends to offshore operations with the sharing of marine resources.  

We are proud to highlight that this resulted in project cost reductions by 33% from the approved project cost.The project was successfully completed, logging a total of 2.7 million manhours, zero lost time injury and zero lost time incident.  

First gas was delivered successfully ahead of the committed timeline despite the significant impact to the mobilisation of resources and construction and commissioning crew during the Movement Control Order (MCO) and Restricted Movement Control Order (RMCO) due to the COVID-19 pandemic.  

This commendable achievement is the result of the excellent collaboration, perseverance and commitment demonstrated between partners and stakeholders.SK408 PSC is made up of SapuraOMV with 40% participating interest, Sarawak Shell Berhad holds 30% and PETRONAS Carigali Sdn Bhd holds the remaining 30%. 

Congratulations!

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