In a statement Shell Malaysia Chairman Jon Chadwick said, “Drilling operations on the well commenced on 4 August. Malikai-1 was drilled as a vertical hole in a water depth of 565 metres [and] the well encountered a long oil column in very good quality reservoirs.”

“The discovery was made approximately 110 km from the Gumusut field in Block J, offshore Sabah. The well was drilled by Atwood Oceanic’s semisub, Atwood Falcon, [and] initial indications are that Malikai crude oil is of a high quality.

“As a long-term partner in Malaysia's progress, we are delighted to announce this highly significant discovery. Another pleasing discovery,” added Chadwick.

Shell is the operator of the block and has a 40% stake. The other partners in the PSC are ConocoPhillips (40%) and Petronas Carigali (20%).