Shell starts oil production in Sabah waters

December 15, 2016

KUALA LUMPUR – Shell has started oil production from the Malikai Tension-Leg Platform (TLP), located 100-kilometres off the coast of Sabah.

Located in waters up to 500 metres deep, Malikai is Shell’s second deep-water project in Malaysia, following the successful start-up of the Gumusut-Kakap platform in 2014.

Malikai is expected to have a peak production of 60,000 barrels per day. As the company’s first TLP in the country, Malikai is an example of the strength of Shell’s global deep-water business, applying TLP expertise from decades of operations in the U.S. Gulf of Mexico.

“Malikai marks an important milestone for Shell, its partners, Sabah and Malaysia. The project has demonstrated our capability in delivering competitive deep-water projects utilising our global expertise,” said Andy Brown, Upstream Director, Royal Dutch Shell.

The project features a cost-effective platform design and a unique, industry-first set of risers, or pipes that connect the platform to the wells for oil production, which required fewer drilling materials and lower costs.

The Malikai TLP project has allowed Shell to share deep-water expertise with Malaysian energy companies, playing an active role in helping the government develop the nation’s deep-water resources and deep-water service industry.

Datuk Iain Lo, Shell Malaysia Chairman said that the Malikai TLP was designed and built in Malaysia, by Malaysians where it was a significant demonstration of Shell’s drive for innovation and development of local deep-water capability together with PETRONAS.

“The safe and successful start-up of Malikai is a highpoint for us, as Shell celebrates 125 years in Malaysia. We will continue to power Malaysia’s progress in the energy sector,” he said.

The Malikai project is a joint venture between Shell (35 percent as operator), ConocoPhillips Sabah Ltd (35 percent) and PETRONAS Carigali Sdn Bhd (30 percent).

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