Shell, through Sabah Shell Petroleum Company, has taken a final investment decision on Phase 3 of the Malikai deepwater development offshore Malaysia.
The project will add four oil-producing wells to increase Malikai’s expected recoverable oil volumes. It is intended to support material liquids production of around 1.4 million barrels per day towards 2030 and beyond.
Phase 3 is expected to raise oil production at Malikai by 60%, from around 25,000 barrels per day to approximately 40,000 barrels per day. Production from the new phase is expected to begin in the third quarter of 2028.
The development will use the single combo riser technology introduced in Malikai Phase 1 and later applied in Phase 2 in 2021.
Sabah Shell Petroleum Company operates the Malikai development, which was commissioned in 2016. The field is located 100 km offshore Sabah in water depths of 500 m and uses Malaysia’s first tension leg platform.
Malikai was Shell’s second deepwater asset in Malaysia. ConocoPhillips and Petronas Carigali are partners in the project.
Sabah Shell Petroleum Company also operates the Gumusut-Kakap-Geronggong-Jagus East field, Shell’s first deepwater development in Malaysia. The development began production in 2014, has reached its fourth phase and currently produces an average of around 76,000 barrels of oil per day.