In January 2012, Shell and Petronas signed twoproduction sharing contracts (PSC) for enhanced oil recovery (EOR) projects offshore the coast of Sabah and Sarawak States in Malaysia.
With $12 billion capital expenditure over the next 30 years, Shell and Petronas are targeting to increase the current 35% recovery rate to 50% in nine fields of the Baram Delta and four other fields offshore Sabah including St Joseph.
In parallel Petronas initiated the Angsi CEOR Vessel project to be moored 160 kilometers offshore Terengganu in the Malaysia Peninsula.
Budgeted to $1 billion capital expenditure, Petronas Angsi CEOR Vessel intended to inject a combination of desalinated water together with an alkali-surfactants-polymers (ASP) mixture.
In this process the oil and gas recovery performances are directly related to the adequate balance between the desalinated soft water and the surfactant additives.
According to Shell and Petronas agreement the vessel developed and used for AngsiCEOR was expected to move to St Joseph after four years operations.
Unfortunately, in moving into execution phase, the last costs estimates for the Angsi CEOR Vessel were exceeding significantly the $1 billion budgeted costs leading Petronasto consider alternative options.
Technip completed St Joseph CEOR conceptual study
In this context, Shell speed up the development of the St Joseph CEOR Vessel project.
Defined as a pilot, St Joseph CEOR Vessel should be far smaller than Angsi.