Shell begins oil production from Malikai deep-water TLP in Malaysia
Shell has begun oil production from the Malikai Tension-Leg Platform (TLP) in Malaysia, marking an important milestone for the company, its partners and the country.
Malikai is located 100 km off the coast of the Malaysian state of Sabah in waters up to 500 m deep. It serves as Shell’s second deep-water project in Malaysia, following the successful start-up of the Gumusut-Kakap platform in 2014.
The Malikai deep-water platform is expected to have a peak production of 60,000 barrels per day. As the company’s first 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 US Gulf of Mexico.
“Malikai marks an important milestone for Shell, its partners, Sabah and Malaysia. The project has demonstrated our capability in delivering competitive deep-water projects utilizing our global expertise.” said Andy Brown, Upstream Director, Royal Dutch 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 required fewer drilling materials and lower costs.
Designed and built in Malaysia, 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.
The Malikai project is a joint venture between Shell, which holds 35% stake and serves as the project’s operator; Conoco Phillips Sabah, with 35% stake as well; and Petronas Carigali, with 30%.
Globally, Shell’s deep-water business is a growth priority for the company and currently produces 600,000 boe/d. Deep-water production is expected to increase to more than 900,000 boe/d by the early 2020s from already discovered, established reservoirs.
Two other Shell-operated projects are currently under construction or undergoing pre-production commissioning: Coulomb Phase 2 and Appomattox in the US Gulf of Mexico. In September 2016, Shell announced the start of production at Stones in the Gulf of Mexico, the world’s deepest offshore oil and gas project beneath 2,900 m of water.