Block G Partners Make FID for Malikai Field Development (Malaysia)

Block G PSC Co-Venturers Shell Malaysia, PETRONAS Carigali and ConocoPhillips Sabah Ltd. announced today that they have taken Final Investment Decision to develop the deepwater Malikai oil field, some 100 km offshore Sabah, Malaysia.

The field, located in waters up to 500 metres deep, is part of the Block G Production Sharing Contract awarded by PETRONAS in 1995. Operated by Sabah Shell Petroleum Company, it is the country’s third deepwater project. Shell and ConocoPhillips each hold 35% interest in the development while PETRONAS Carigali has 30%.

“Malikai is an exciting oil development in Shell Malaysia’s upstream portfolio and will cement Malaysia’s position as a regional deepwater hub and centre of excellence,” said Iain Lo, Chairman Shell Malaysia.

Shell and PETRONAS recently announced first early oil production from Gumusut Kakap, Malaysia’s second deepwater development.

“The deepwater environment is a challenging one, and we thank PETRONAS for their continued confidence in us. The success of Malikai will leverage on strengths derived from deepwater expertise already embedded in Malaysia, as well as draw on global expertise from our leading deepwater position. The project also continues the development of local deepwater capability in Malaysia,” Lo continued.

The Malikai development will require 17 wells drilled from a 23,500 tonne Tension Leg Platform (TLP) production facility, the first TLP to be fabricated and installed in Malaysia. The contracts for the engineering, procurement and construction of the TLP have been awarded.

[mappress]
February 1, 2013