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Sabah Shell petroleum company general manager Ian Lim said the company is doing well in oil production performance over the years, particularly in Sabah deepwaters. NST photo by EDMUND SAMUNTING

KOTA KINABALU: As Sabah contributes about 50 per cent of the country’s oil production and with 60 per cent of production in the state comes from Shell, the oil company hopes to keep oil production competitive and growing sustainably in the next years to come.

Sabah Shell petroleum company general manager Ian Lim said Shell is doing well in oil production performance over the years, particularly in Sabah deep water.

“Within the Shell group, we compete very well. One of the things we are proud of is that in a lot of internal conversation, whenever we talk about business, we talk about which team and asset is producing well.

“The word Sabah deepwaters shows up and it’s really a proud moment as well as recognition to the team and where we are at. Of course, there is still improvement to be made but Shell is on (the right) track,” he said.

Ian was speaking to reporters at the Malikai Media Open Day at Plaza Shell here, today.

He said Shell is constantly exploring Sabah and Sarawak waters to look for opportunities and work with Petronas as well as other partners to grow in the business.

During the open day event, Shell technical and operational representatives briefed and updated the media on the operation of the company’s second deep-water project in Malaysia – Malikai Tension Leg Platform (TLP).

Malikai is the first deep-water TLP in the country and the first Shell TLP outside of the Gulf of Mexico. The Malikai TLP was designed by Malaysians and began operating last year.

Located 100km off the coast of Sabah in waters about 500m deep, the Malikai oil field is capable to produce 60,000 barrels per day. It produces and pipes oil 50km (around 30 miles) to the shallow-water Kebabangan platform for processing.

The platform, which floats on the surface of the sea while moored securely to the sea floor, has 90 crew members living and working on board.

In April, the Institution of Engineers, Malaysia (IEM) awarded Shell Projects and Technology Malaysia with the highest honour in design and engineering for its Malikai TLP deepwater project.

The IEM Outstanding Engineering Achievement Award 2017 was presented to an oil and gas company for the first time in three decades.

Speaking on the TLP technology utilised by Shell in the country, Ian said the company had proved itself that it is able to integrate technology by engaging with local talents.

“What we can take from this Malikai journey and experience is that we are able to do this. It is for local talent development and makes projects more competitive.

“When we bring back the technology, it doesn’t mean Shell will now be concentrating on deep water exploration. We continue to look at opportunity in general whether it is deep water here or shallow water in Sarawak,” he said.

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