About Shell Exploration and Production (EP)

The pioneers of Malaysia's exploration and production sector, Shell first set up operations in Sarawak in 1910 and laid the foundations for an industry that would later help to fuel the growth of the nation. Almost one century later, and now operating as contractors to PETRONAS, Shell Malaysia Exploration and Production (SM-EP) companies continue to extract and deliver petroleum efficiently, profitably and in environmentally friendly and socially responsible ways to meet evolving customer needs and the growing demand for energy. As a responsible long-term partner in Malaysia's development, we work closely with our customers, our partners and the government to advance more efficient and sustainable use of energy and natural resources.

As of 2007, our upstream companies have interests in 17 production sharing contracts (PSCs) in various offshore blocks in East and West Malaysia. There are more than 25 producing fields within these PSCs, 60% of which are operated by SM-EP. We also supply gas to various customers, including the PETRONAS LNG Complex, the Shell MDS Plant, the Asean Bintulu Fertilizer Plant and the Sarawak Electricity Supply Corporation.

Gas remains the major part of our EP portfolio in Malaysia with oil set to grow with the development of major deep water discoveries in offshore Sabah.

We are investing more to find, develop and deliver oil and gas, to increase recovery from and extend the lives of existing fields offshore Sarawak and secure new production in more difficult conditions such as the deep waters offshore Sabah. We are also bringing together our international and home-grown expertise in undertaking very large and complex projects such as the the massive E11 Hub integrated gas project offshore Sarawak, currently Shell EP Asia Pacific's largest ongoing project in execution. Once completed, the project will centralise gas production from surounding fields through one integrated hub, before taking the processed gas to the LNG complex onshore Bintulu.

Developing and implementing new technologies and integrating existing technologies also help us maximise the recovery of oil and gas from existing resources.  These include deploying advanced seismic, integrated reservoir modelling, expandable tubulars for wells, managed pressure drilling, smart wells and seabed logging. Our Real Time Operating  Centre in Miri, Sarawak allows Malaysia-based drilling engineers to analyse operational data online, complemented with 3D capabilities and to actively manage the drilling operations from all over the region. We continue to be a front-runner in the implementation of "Smart Fields" which allow fields to be operated remotely and interactively and will result in increased reserves and production from Malaysian fields. Shell expertise is being brought in to grow and evolve deepwater oil and gas fields in pursuit of a Malaysian deepwater center of excellence.

Equally, technology will play a key part in our work to reduce and manage the carbon dioxide emissions related to energy production and use - sustainable development underpins our business.