Sabah Shell Petroleum Company Ltd (SSPC), a subsidiary of Shell plc, has taken a final investment decision (FID) on the third phase of the Malikai deepwater development, offshore Sabah.
The project, which involves the drilling of four oil producing wells to enhance Malikai’s expected recoverable oil volumes, is part of Shell’s continued investment in Malaysia’s deepwater potential and supports Shell’s aim to sustain material liquids production of ~1.4 million barrels per day towards 2030 and beyond. When completed, Phase 3 is expected to increase oil production at Malikai by 60%, from around 25,000 currently to approximately 40,000 barrels per day. Production from Phase 3 is expected to begin from Q3 2028.
“The final investment decision of the Malikai Phase 3 development marks another important milestone in Shell’s long?standing commitment to Malaysia. We look forward to further contributing to the state’s economic growth through investments in competitive and resilient projects. I would like to thank PETRONAS and our partners for their continued confidence and support, and I look forward to building on our strong collaboration for continued success for the nation,” said Siti Sulaiman, Country Chair of Shell Malaysia and Senior Vice President Upstream Malaysia.
Shell is proud of its long and successful history in Malaysia. Under the stewardship of Malaysia Petroleum Management, PETRONAS, Shell remains committed to supporting the country’s economic progress and energy transition efforts with competitive and resilient investments.