KUALA LUMPUR (Jan 13): Sabah Shell Petroleum Co Ltd, which operates the Malikai Tension-Leg Platform (TLP) offshore Sabah, is investing in the second phase of the deep water oil and gas project to enhance Malikai's oil production.

In a statement today, Shell Malaysia said the Malikai TLP project is a joint venture (JV) among Sabah Shell, ConocoPhillips Sabah Ltd and Petronas Carigali Sdn Bhd.

Sabah Shell and ConocoPhillips Sabah own a 35% stake each in the JV while Petronas Carigali holds the remaining 30%.

"The project, which involves the drilling of two additional oil producing wells and four water injection wells to enhance Malikai's expected recoverable oil volumes, is part of Shell's continued investment in the country's deep water potential and is expected to contribute to Malikai's production in the second quarter of 2021. The development deploys the same single-combo riser technology that was used for the first time during Malikai phase 1," Shell Malaysia said.

Shell Malaysia upstream vice-president Simon Durkin said in the statement: "Since coming online in 2016, the Malikai TLP project has allowed Shell to play an active role in helping Sabah and Malaysia develop their deep water resources and related service industries. Projects such as these demonstrate our ability to fully leverage our existing infrastructure to unlock value."

Shell Malaysia did not specify in the statement the amount of money Sabah Shell is investing in the second phase of the Malikai deep water development.