The discovery was made by Shell via the Limbayong-2 well during the appraisal of the Limbayong gas field.
"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.
"Petronas is indeed pleased with the discovery which affirms the hydrocarbon prospects of Malaysia's deep water areas.
"This discovery attests to the significant potential in this area and is a positive development for exploration activities in Sabah and Sarawak," said Petronas in a statement.
The drilling of the Limbayong-2 appraisal well was carried out by the consortium of Shell Malaysia (35 per cent), Conoco Phillips (35 per cent) and Petronas Carigali Sdn Bhd (30 per cent).-- BERNAMA
