Shell is a Dutch company which is specialized and well-known for its work in the energy and oilfield. Being a very competitive and strong company it seeks expansion worldwide to help reach market segments that are untouched being the first movers.
However, only recently, Shell has announced that it will shut all its work in Malaysia in July, 2019. This is due to maintenance that will take place effective immediately to the oilfield offshore Sabah in Eastere Malaysia. This will cause a decrease in the exporting of Kimanis crude oil which will strongly affect the economy.
This is significant due to the fact that Kimanis is the main and largest material that is being exported by Malaysia. Lowering the volumes of exporting has a negative effect on the country as a whole. Reports concluded that this will cause a problem for Asian crude supplies.
More sources include that the Gumusut-Kakap oilfield will have a reduction of Kimanis for almost 27 days which will drop its value three categories. This is a total of 8 shipments only in June.
This maintenance however is crucial to introduce the phase 2 project which focuses on having an additional 50,000 barrel to be sold and exported per day. The start of this phase is said to be in 2019. The total production of Kimanis will increase in turn to almost 220,000 barrel per day in only one month.
The company is prohibited to release any dates in terms of the length of the project and the timing for the shut off.