UPDATE: Shell, Petronas, ConocoPhillips Take FID on Offshore Malikai Field
Shell Malaysia, Petronas Carigali and ConocoPhillips Sabah have taken a final investment decision to develop the deepwater Malikai oil field, offshore Sabah, and the joint venture expects the project to start up in 2016/17, a spokesperson from Shell confirmed late Monday.
The field, sited in waters up to 1,640 feet (500 meters) deep, is part of the Block G Production Sharing Contract (PSC) awarded by Petronas in 1995.
The Malikai development will require 17 wells drilled from a 23,500 tonne tension leg platform (TLP) production facility. The contracts for the engineering, procurement and construction of the TLP have been awarded, Shell Malaysia said in its disclosure.
"Malikai is an exciting oil development in Shell Malaysia's upstream portfolio and will cement Malaysia's position as a regional deepwater hub and center of excellence," Shell Malaysia's Chairman Iain Lo said in a statement.
Operated by Sabah Shell Petroleum Company, the Malikai PSC is Malaysia's third deepwater project. Shell and ConocoPhillips each hold a 35 percent interest in the development, while Petronas Carigali holds the remaining 30 percent stake.
This most recent agreement follows closely on the heels of a recent PSC inked by Shell and Petronas. In November last year, Shell and Petronas signed a PSC to explore for oil on Block SK319, offshore Sarawak.
WHAT DO YOU THINK?
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
Operates 29 Offshore Rigs
- Shell Looks Beyond Road Fuels to Secure Future of Refining (Nov 06)
- API Panel Member: Voluntary Methane Program Forthcoming (Oct 06)
- Eni Bets Big on Zohr Explorer Finding New Treasure (Oct 06)
Company: ConocoPhillips more info
Operates 12 Offshore Rigs
- Exxon, BP Targeted in NYC Suit That Relies on 'Nuisance' Theory (Jan 10)
- ConocoPhillips Vows Financial Discipline As Aims To Boost Output (Nov 08)
- ConocoPhillips' Profit Beats Estimates, But Budget Cut 10% (Oct 26)
Company: PETRONAS more info
Operates 10 Offshore Rigs
- After Europe's Gas Market Disasters, LNG May Come to the Rescue (Dec 12)
- Petronas Unit Agrees Share Swap With Shell's Africa Operator (Dec 05)
- Malaysia's Petronas Asked To Exit Myanmar In Protest Of Rohingya Crisis (Nov 08)