Shell starts Malaysia deep-water production

Shell starts Malaysia deep-water production

Shell (LSE:RDSA) has commenced production at its deep-water Malikai project off the cost of Malaysia.

Malikai is located in waters up to 500 metres deep and is expected to reach peak production of 60,000 barrels per day (bpd). It is Shell’s second deep-water project in Malaysia after the successful start-up of the Gumusu-Kakap platform in 2014.

The project is the first of its kind in Malaysia, employing a tension leg platform (TLP) – a vertically floating structure which uses tethers to hold it upright in tension.

“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 Shell’s upstream director Andy Brown.

Designed and built in Malaysia, the Malikai project is a joint venture between Shell (35%, operator), ConocoPhillips Sabah (35%) and PETRONAS Carigali (30%).

Shell says through the project it has been able 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’.