Shell Malaysia, Petronas Carigali and ConocoPhillips Sabah have taken a final investment decision to develop the deepwater Malikai oil field, offshore Sabah, and the joint venture expects the project to start up in 2016/17, a spokesperson from Shell confirmed late Monday.
The field, sited in waters up to 1,640 feet (500 meters) deep, is part of the Block G Production Sharing Contract (PSC) awarded by Petronas in 1995.
The Malikai development will require 17 wells drilled from a 23,500 tonne tension leg platform (TLP) production facility. The contracts for the engineering, procurement and construction of the TLP have been awarded, Shell Malaysia said in its disclosure.
"Malikai is an exciting oil development in Shell Malaysia's upstream portfolio and will cement Malaysia's position as a regional deepwater hub and center of excellence," Shell Malaysia's Chairman Iain Lo said in a statement.
Operated by Sabah Shell Petroleum Company, the Malikai PSC is Malaysia's third deepwater project. Shell and ConocoPhillips each hold a 35 percent interest in the development, while Petronas Carigali holds the remaining 30 percent stake.
This most recent agreement follows closely on the heels of a recent PSC inked by Shell and Petronas. In November last year, Shell and Petronas signed a PSC to explore for oil on Block SK319, offshore Sarawak.