Shell Takes Final Investment Decision On Malikai Phase 3

KOTA KINABALU, Aug 5 (Bernama) -- Sabah Shell Petroleum Company Ltd (SSPC) has taken the final investment decision (FID) on the third phase of the Malikai deepwater development offshore Sabah, Shell said in a statement today.

The project involves drilling four oil-producing wells to increase the field's expected recoverable oil reserves and forms part of Shell's continued investment in Malaysia's deepwater resources.

Once completed, Phase 3 is expected to lift Malikai's oil production by 60 per cent to about 40,000 barrels per day from around 25,000 barrels per day currently.

Production from the third phase is scheduled to begin in the third quarter of 2028.

Shell Malaysia country chair and senior vice-president for Upstream Malaysia Siti Sulaiman said the decision marked another milestone in the company's long-standing commitment to Malaysia.

"The final investment decision for the Malikai Phase 3 development marks another important milestone in Shell's long-standing commitment to Malaysia. We look forward to further contributing to the state's economic growth through investments in competitive and resilient projects.

"I would like to thank Petronas and our partners for their continued confidence and support, and I look forward to building on our strong collaboration for the nation's continued success," she said.

SSPC operates the Malikai development, which began production in 2016. Located about 100 kilometres offshore Sabah, it is Malaysia's first tension leg platform.

Malikai, Shell's second deepwater asset in Malaysia, is jointly owned by SSPC and Shell Sabah Selatan Sdn Bhd, which together hold a 35 per cent stake, ConocoPhillips Sabah Ltd (35 per cent) and Petronas Carigali Sdn Bhd (30 per cent).

Phase 3 will use the same single combo riser technology introduced in Malikai Phase 1 and later deployed in Phase 2 in 2021.

-- BERNAMA