Oil found offshore Sabah at Limbayong-2 well, says Petronas

KUALA LUMPUR: Oil has been discovered offshore Sabah at the Limbayong-2 well with 136 metres of oil bearing sands.

Petroliam Nasional (Petronas) and Shell Malaysia said on Monday the discovery was made during the appraisal of the Limbayong gas field by Shell.

"The appraisal well encountered 136 metres of oil bearing sands, and there are plans to conduct more appraisal work on the discovery to determine its recoverable volume," it said.

The consortium of Shell Malaysia (35%), Conoco Phillips (35%) and Petronas Carigali Sdn Bhd (30%) were involved in the drilling of the Limbayong-2 appraisal well.

Petronas executive vice president of exploration and production Datuk Wee Yiaw Hin said the discovery affirmed the hydrocarbon prospects of Malaysia's deep water areas.

Iain Lo, Chairman of Shell Malaysia chairman and managing director of Sabah Shell Petroleum Company Ltd Iain Lo said this discovery attested to the significant potential in this area and was a positive development for exploration activities in East Malaysia.