KUALA LUMPUR (Dec 14): Shell has started oil production from the Malikai tension-leg platform (TLP), located 100-kilometres off the coast of Sabah.
 
Located in waters up to 500 metres deep, Malikai is Shell’s second deep-water project in Malaysia, following the successful start-up of the Gumusut-Kakap platform in 2014. 
 
In a statement today, Shell said Malikai is expected to have a peak production of 60,000 barrels per day. As the company’s first tension-leg platform (TLP) in the country, Malikai is an example of the strength of Shell’s global deep-water business, applying TLP expertise from decades of operations in the U.S. Gulf of Mexico.
 
The Malikai project is a joint venture between Shell (35%, operator), ConocoPhillips Sabah Ltd (35%) and Petronas Carigali Sdn Bhd (30%).
  
“Malikai marks an important milestone for Shell, its partners, Sabah and Malaysia. The project has demonstrated our capability in delivering competitive deep-water projects, utilising our global expertise,” said Andy Brown, Upstream Director, Royal Dutch Shell.
 
According to Shell, the project features a cost-effective platform design and a unique, industry-first set of risers or pipes that connect the platform to the wells for oil production, which require fewer drilling materials and lower costs.
 
The Malikai TLP project has allowed Shell to share deep-water expertise with Malaysian energy companies, playing an active role in helping the government develop the nation’s deep-water resources and deep-water service industry. 
 
Shell Malaysia Chairman Datuk Iain Lo said: “The Malikai TLP is designed and built in Malaysia, by Malaysians — it is a significant demonstration of Shell’s drive for innovation and development of local deep-water capability, together with Petroliam Nasional Bhd (PETRONAS). The safe and successful start-up of Malikai is a highpoint for us, as Shell celebrates 125 years in Malaysia. We will continue to power Malaysia's progress in the energy sector.”