The Malaysian subsidiary of Royal Dutch Shell (NYSE:RDS-A) awarded offshore drilling and production equipment manufacturer Dril-Quip (NYSE:DRQ) an equipment supply contract for the Shell Malikai tension-leg platform project located off the coast of Sabah in approximately 1,800 feet of water.
The Shell Malikai TLP project is designed to process 60,000 barrels per day of liquids and handle 80,000 barrels per day of seawater for treatment or injection. It will also be equipped to compress 50 million cubic feet per day of gas and export 40 MMcfd of gas.
A tension-leg platform is an offshore platform designed to be connected to the sea bed with long steel tubular structures called tendons that provide stability regardless of waves or sea level.
Dril-Quip will provide subsea wellheads, tensioner systems, risers, production trees, injection trees, and tieback connectors for the project. Delivery of these systems is expected to begin in 2014.