Petroliam Nasional Berhad (Petronas) and Royal Dutch Shell plc announced Monday an oil discovery offshore Sabah, Malaysia. The discovery was made via the Limbayong-2 well during the appraisal of the Limbayong gas field by Shell. The appraisal well encountered 446 feet (136 meters) of oil bearing sands, and there are plans to conduct more appraisal work on the discovery to determine its recoverable volume.

Petronas’ Executive Vice President of Exploration and Production Wee Yiaw Hin said: “We are indeed pleased with the discovery which affirms the hydrocarbon prospects of Malaysia’s deep water areas.” Iain Lo, chairman of Shell Malaysia and managing director of Sabah Shell Petroleum Company Ltd said: “This discovery attests to the significant potential in this area and is a positive development for exploration activities in East Malaysia.”

The drilling of the Limbayong-2 appraisal well was carried out by the consortium of Shell Malaysia (35 percent), ConocoPhillips (35 percent) and Petronas Carigali Sdn Bhd (30 percent).