In a report published on 6 August 2026, Splash247 reported that supermajor Shell, through its Malaysian subsidiary Sabah Shell Petroleum Company, has taken a final investment decision on the third phase of the Malikai deepwater development offshore Sabah, Malaysia. The project involves drilling four oil-producing wells to enhance Malikai’s expected recoverable oil volumes, with the aim of sustaining material liquids production of around 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 barrels per day today to approximately 40,000 barrels per day. First production from Phase 3 is scheduled for the third quarter of 2028, according to Splash247.
Deepwater development details
Malikai was commissioned in 2016 and is Shell’s second deepwater asset in Malaysia, Splash247 reported. The development uses the country’s first tension leg platform, located 100 km offshore Sabah at water depths of 500 m. Phase 3 will leverage the same single combo riser technology first introduced in Malikai Phase 1 and subsequently applied in Phase 2 in 2021. Project partners in Malikai are ConocoPhillips and Petronas Carigali.
Production uplift and schedule
The Phase 3 FID is designed to add four producing wells and raise the field’s output from around 25,000 bpd to approximately 40,000 bpd, a 60% increase. Splash247’s report places the expected first production in Q3 2028.
| Metric | Current | Phase 3 target |
|---|---|---|
| Malikai output | ~25,000 bpd | ~40,000 bpd |
| Output gain | — | +60% |
| New wells | — | 4 |
| First production | — | Q3 2028 |
Splash247 reported that the project involves drilling four oil-producing wells to enhance Malikai's expected recoverable oil volumes.
Shell's wider Sabah deepwater portfolio
Sabah Shell Petroleum Company also operates the Gumusut-Kakap-Geronggong-Jagus East field, Shell’s first deepwater development in Malaysia. That field started production in 2014 and has progressed to its fourth phase, currently producing an average of around 76,000 barrels of oil per day, according to Splash247.
| Asset | Commissioned | Current output | Phase |
|---|---|---|---|
| Malikai | 2016 | ~25,000 bpd | Phase 3 FID |
| Gumusut-Kakap-Geronggong-Jagus East | 2014 | ~76,000 bpd | Phase 4 |
Commodity supply track
For commodity analysts and crude traders tracking supply additions, the Malikai Phase 3 programme adds a net ~15,000 barrels per day of deepwater oil production (40,000 bpd versus 25,000 bpd) scheduled to start in the third quarter of 2028. The project forms part of Shell’s stated ambition of sustaining material liquids production of around 1.4 million barrels per day towards 2030 and beyond, as reported by Splash247. No pricing, exchange contract, or inventory data were included in the report.
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