Shell Makes Deepwater Discovery Offshore Malaysia

Shell Malaysia reports that the Shell - PETRONAS Carigali - ConocoPhillips joint venture has made another important oil discovery in waters offshore Sabah, with their recent Malikai-1 exploration well.

The discovery is located in Malaysia's Deepwater Block G, in waters on the northwest of Sabah. Shell Malaysia upstream company, Sabah Shell Petroleum Company Ltd, is the operator of Block G on behalf of this partnership. Jon Chadwick, Chairman of Shell Malaysia, said: "The Malikai-1 exploration well encountered a long oil column in very good quality reservoirs. Initial indications are that Malikai crude oil is of a high quality. Another pleasing discovery."

Drilling operations on the well commenced on 4th August 2004. Malikai-1 was drilled as a vertical hole in a water depth of 565 meters. The discovery was made approximately 110 km from the Gumusut field in Block J, offshore Sabah. The well was drilled by Atwood Oceanic's semisub, Atwood Falcon. Chadwick added: "As a long-term partner in Malaysia's progress, we are delighted to announce this highly significant discovery, our second offshore Sabah oil discovery within a year."