Overview of the Malikai Project

Abstract

By all accounts, Malikai is a marginal field – limited reserves in challenging reservoirs, remote from existing infrastructure and in 500m water depth. The field was discovered in 2004 and initial concepts based on a standalone development were not economically viable. The fact that it is now a producing asset is a success story built on effective collaboration, innovation and discipline execution. Shell with its JV partners (Conoco Philips, PETRONAS Carigali) reviewed the original field development and made the key decision to have Malikai as a satellite development to their Kebabangan production hub. To further reduce capital investment, the project team had to look at fit-for-purpose technical solutions (e.g. use of single casing combo top tensioned risers, tender assisted drilling). The tendering strategy allowed for maximum input from the industry while maintaining a design that remains compliant to Shell's proven deepwater design guidelines. It goes without saying that staying to cost and schedule promises took on a much heavier emphasis. Management of Change was strictly enforced. Similarly, with contract management. Key resources from Shell's center of excellence in Gulf of Mexico were mobilised to lead and deliver key components (tendons, risers). Others were on hand to provide advice and technical assurance on critical activities (integration, offshore installation, etc.). Local content and technology transfer were always important differentiators to Shell's operating model in Malaysia. This is clearly demonstrated in the make-up of the project team including its leadership. Goal Zero is a watch word especially at the main fabrication yard. The project recorded 25 million man-hours without any serious, lost-time injury and thereby keeping well below the Company's set targets.         As a result of all the efforts, Malikai registered its proud place in oil and gas records as the 1st TLP for Malaysia and Shell's 1st outside Gulf of Mexico.