Royal Dutch Shell’s subsidiary Shell Malaysia along with its Block G Production Sharing Contract (PSC) joint venture partners, has taken the final investment decision to develop the Malikai oil field, about 100km offshore Sabah, Malaysia.

Shell Malaysia holds 35% interest in the project, while the other joint venture partners, ConocoPhillips and PETRONAS Carigali, holds 35% and 30% interest, respectively.

Located in water depths of about 500m, the oil field is operated by Sabah Shell Petroleum Company, and is part of the Block G PSC awarded by PETRONAS in 1995.

Malaysia’s third deepwater project, Malikai oil field development will involve drilling of 17 wells from a 23,500t Tension Leg Platform (TLP) production facility, which will be the first TLP to be fabricated and installed in the country.

The engineering, procurement and construction contracts of the TLP have already been awarded.

Shell Malaysia chairman Iain Lo said Malikai is an important oil development in Shell Malaysia’s upstream portfolio, which will confirm the country’s position as a regional deepwater hub and centre of excellence.

"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 added.