The field, which is part of the Deepwater Block G where oil was discovered in 2004, is the Shell’s second deep-water project in the country.

Featuring the company’s first tension leg platform (TLP) in Malaysia, Malikai field is estimated to have a peak production capacity of 60,000 barrels per day.

The TLP production platform is designed handle up to 60,000 barrels of liquid per day.

Shell operates the Malikai field with 35% stake while other partners include ConocoPhilips Sabah with 35% interest and Petronas Carigali with 30% stake.

Shell Royal Dutch upstream director Andy Brown said: “The project has demonstrated our capability in delivering competitive deep-water projects utilising our global expertise.”

Production from the offshore facilities at the field will be transferred though subsea pipelines to Kebabangan (KBB) shallow-water hub gas processing facility.

The gas processing facility will further convey the oil to Sabah Oil & Gas Terminal (SOGT) for exports.

Petronas Malaysia Petroleum Management vice-president Encik Muhammad Zamri Jusoh said: “Development of Malikai is one of the key elements of the Sabah integrated oil and gas project initiated by Petronas.

“Thanks to the support from Shell as well as partners ConocoPhilips and PETRONAS Carigali Sdn Bhd, we were able to pursue the Malikai development as a tieback to the Kebabangan platform for the oil processing prior to further export to the Sabah-Sarawak Integrated Oil and Gas Project (SSIOGP).”

The development of the oil field involves the drilling of 17 wells, employing TLP production facility.