Malaysia’s 135,000 bpd oilfield starts production: Shell

SINGAPORE, Nov 20 – Malaysia’s 135,000 barrels-per-day Gumusut-Kakap oilfield has begun first production ahead of schedule, Royal Dutch Shell said in a statement today.

The oilfield, located about 120 km offshore Sabah in Malaysia, began production on Nov. 18 ahead of completion of the field’s floating production facility, the company said.

“This is made possible by an innovative linking or tie-back of two of (the field’s) production wells to the Kikeh production facility, the country’s first deepwater development also offshore Sabah, operated by Murphy Sabah Oil,” it said.

The full start-up of the deepsea oilfield was expected to be delayed to the second half of 2013 from 2012 as construction of the floating production facility for the field has taken longer than expected, Wee Yiaw Hin, executive vice president for exploration and production at national energy company Petronas has said.

The “tie-back” early production option is an interim measure that is expected to bring an additional 25,000 barrels per day to Malaysia, Shell added.

The project will eventually use the floating production facility once it is fully completed which is likely at the end of 2013, Shell said.

Shell Malaysia’s upstream company operates the project with Shell Malaysia holding a stake of 33 per cent. ConocoPhillips has a 33 per cent stake, Petronas holds 20 per cent and Murphy Oil 14 per cent. – Reuters


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