Shell starts oil production from Malikai deepwater platform in Malaysia

12/14/2016

THE HAGUE -- Shell has started oil production from the Malikai tension leg platform (TLP), located 100-km off the coast of the Malaysian state of Sabah. Located in waters up to 500 m deep, Malikai is Shell’s second deepwater 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 bopd. As the company’s first TLP in the country, Malikai is an example of the strength of Shell’s global deepwater business, applying TLP expertise from decades of operations in the U.S. GOM.

“Malikai marks an important milestone for Shell, its partners, Sabah and Malaysia. The project has demonstrated our capability in delivering competitive deepwater projects utilizing 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.

Designed and built in Malaysia, the Malikai TLP project has allowed Shell to share deepwater expertise with Malaysian energy companies, playing an active role in helping the government develop the nation’s deepwater resources and deepwater service industry. The Malikai project is a joint venture between Shell (35%, operator), ConocoPhillips Sabah (35%) and PETRONAS Carigali (30%).

Globally, Shell’s deepwater business is a growth priority for the company and currently produces 600,000 boed. Deepwater production is expected to increase to more than 900,000 boed by the early 2020s from already discovered, established reservoirs. Two other Shell-operated projects are currently under construction or undergoing pre-production commissioning: Coulomb Phase 2 and Appomattox in the U.S. GOM. In September 2016, Shell announced the start of production at Stones in the GOM, the world’s deepest offshore oil and gas project beneath 2,900 m of water.

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