Shell has discovered more gas at its Marjoram-1 well, which is located 180km off the Malaysia coast in Block SK318.

The further exploration success follows a discovery in the same block earlier this year, when the Rosmari-1 well, about 135km off the Malaysian coast, encountered a gas column of over 450m.

Shell Upstream international director Andrew Brown said: "Our strategy to expand our heartland areas through technologically advanced exploration is delivering tangible success in deep-water in Malaysia.

"We have a long history in the region, and the addition of new natural gas resources this year ensures we are able to continue to provide cost-effective, reliable, cleaner energy options for the future."

Shell operates Block SK318 with an 85% stake while Petronas Carigali holds the remaining interest.

Block SK318 is located approximately 200km offshore in water depths of 200m to 1,000m.

Shell Malaysia upstream operating company Sarawak Shell Berhad and partner Petronas Carigali have signed two exploration and production sharing contracts (PSCs) with Petronas for blocks 2B and SK318, both offshore Sarawak.

Shell agreed to carry out a drilling campaign to explore an area totalling an estimated 9,000km in the two blocks over the respective exploration periods.

Deepwater Block 2B is located about 300km offshore in water depths ranging from 300m to 2,000m.

The PSC covered 35 years with an initial four-year exploration phase and Shell said the exploration programme is expected to de-risk the challenging deepwater environment in the waters of North Luconia.

Shell started operations in Malaysia in 1910, entering offshore Sarawak in the 1960s.

Image: Map of Block SK318 and Block 2B. Photo: courtesy of Shell.

Defence Technology