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Shell (RDS.A) Takes FID on Malaysia's Timi Gas Development Plan

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Royal Dutch Shell (RDS.A - Free Report) subsidiary Sarawak Shell Berhad (SSB) recently made a final investment decision (FID) on the Timi gas development project and aims to deliver it for Malaysia with its partners PETRONAS Carigali Sdn Bhd and Brunei Energy Exploration.

The Timi field is located around 200 kilometers off the Malaysian coast of Sarawak. SSB's first wellhead platform in Malaysia is powered by a solar and wind hybrid renewable energy system at the Timi development. This unmanned platform weighs almost 60% less than a traditional Tender Assisted Drilling (TAD) wellhead platform. Also, two wells will be drilled as part of this project.

The Timi project is expected to churn out up to 50,000 barrels of oil equivalent per day (boe/d) in its peak time and will transmit the gas generated to the F23 production hub via an 80-kilometer pipeline. This, in turn, will boost growth in the central Luconia area offshore Sarawak.

Shell upstream director Wael Sawan stated that “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.” 

Shell Malaysia aspires to lead the country's energy transition by expanding its investment in reduced carbon-energy solutions while seeking competitive and carbon-resilient upstream investments.

About Shell

Shell is one of the primary oil majors, which constitute a group of U.S. and Europe-based energy giants with global operations. The company is fully integrated as it participates in every aspect related to energy, right from oil production to refining and marketing.

Zacks Rank & Key Picks

Shell has a Zacks Rank #3 (Hold), currently.  Some better-ranked players in the energy  space are Matador Resources Company (MTDR - Free Report) , Devon Energy Corporation (DVN - Free Report) and Continental Resources, Inc. (CLR - Free Report) , each presently flaunting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.