Shell has given the green light for the third phase of its Malikai deepwater development offshore Sabah, Malaysia.
The expansion is projected to increase oil output from the field by 60%, marking a significant step in the energy major’s long-term production strategy in Southeast Asia.
The approval reinforces Shell’s commitment to its existing assets in the region, where it continues to invest in mature fields to sustain and grow production volumes.
While specific investment figures and timelines for Phase 3 were not detailed in the initial report, the move signals confidence in the field’s remaining reserves and the economic viability of further development.
This development comes amid a broader uptick in Malaysian upstream activity.
Recently, Petroleum Sarawak Bhd (Petros) achieved first oil at the Adong Kechil West field, ending a five-decade hiatus in onshore production in Sarawak.