Shell Starts Production from Deep-Water Project Offshore Malaysia

Shell has started oil production from the Malikai Tension-Leg Platform (TLP), located 100 kilometers off the coast of the Malaysian state of Sabah.

Located in waters up to 500 meters deep, Malikai is Shell’s second deep-water project in Malaysia, following the start-up of the Gumusut-Kakap platform in 2014, and it’s also the company’s first TLP in the country.

Malikai is expected to have a peak production of 60,000 barrels per day.

“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.

Designed and built in Malaysia, 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.

The Malikai project is a joint venture between Shell (35%, operator), ConocoPhillips Sabah (35%) and Petronas (30%).

Shell expects its deep-water production to increase to more than 900,000 boe/d 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. Gulf of Mexico. In September 2016, Shell announced the start of production at Stones in the Gulf of Mexico, the world’s deepest offshore oil and gas project beneath 2,900 meters of water.