DAILY EXPRESS NEWS (Malaysia): Shell ready to develop new oil finds off Sabah: Shell Malaysia has secured the funds it needs to develop two new oil fields discovered off Sabah this year, its Chairman Datuk Jon Chadwick said here Sunday. (ShellNews.net) Posted 21 Dec 04
By Kota Kinabalu
Shell Malaysia has secured the funds it needs to develop two new oil fields discovered off Sabah this year, its Chairman Datuk Jon Chadwick said here Sunday. "We obviously need to develop these discoveries that we made and that would cost a lot of money," he told reporters after the prize-giving ceremony at a friendly golf tournament between the Shell and State Government teams, here.
Malikai-1 in the northwest of Sabah was the second oil field discovered by the Shell-Petronas Carigali-ConocoPhilips joint venture in Sabah this year.
In March, the joint venture discovered the Gumusut oil field, about 110km from Malikai-1.
Asked about the funds, Chadwick said: "We can't say how much (the funding is) as we don't know how big these fields are but the shareholders are very encouraged by the results of the company this last year or so and they are prepared to give us further funds."
Chadwick said Shell was pleased with the results of the exploration at the two fields so far.
Although the exact size of the deposits has yet to be established, he described them as "significant and important". "We are looking at how we can develop that oil as rapidly as we can".
Chadwick also foresees a record production level for Shell in Sabah this year with an estimated 70,000 barrels a day.
This would be an increase of 1,000 barrels a day from the 69,000 barrels daily production last year.
The State Government team won the inaugural tournament.
The Yang Dipertua Negeri, Tun Ahmadshah Abdullah, was also in the State team.