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The Malikai Tension Leg Platform. Image courtesy of Shell/Flickr.

Royal Dutch Shell said Wednesday that it has started oil production at the Malikai Tension-Leg Platform (TLP) in offshore Malaysia.

The Malikai TLP is located about 62 miles off the coast of the Malaysian state of Sabah.

Malikai is expected to have a peak production of 60,000 barrels per day.

The platform is located in waters up to 1,640 feet, making Malikai Shell’s second deepwater project in Malaysia.

The platform is also Shell’s first tension leg platform in Malaysia.

“Malikai marks an important milestone for Shell, its partners, Sabah and Malaysia. The project has demonstrated our capability in delivering competitive deep-water projects utilising our global expertise,” Shell upstream director Andy Brown said.

Shell said the project features a cost-effective platform design and a unique, industry-first set of risers that required fewer drilling materials and lower costs.

The platform was designed and built in Malaysia.

Shell added that the Malikai TLP project has allowed it to “share deep-water expertise with Malaysian energy companies, playing an active role in helping the government develop the nation’s deep-water resources and deep-water service industry.”

The Malikai project is a joint venture between Shell with a 35 percent operating stake,  ConocoPhillips Sabah with a 35 percent stake and PETRONAS Carigali with a 30 percent stake.