Oil production starts from Kikeh field off Malaysia

By OGJ editors
HOUSTON, Aug. 22 -- Murphy Oil Corp. has started oil production from Kikeh field, 5 years after making the discovery in 4,400 ft of water 110 km off Sabah, Malaysia.

Predrilled wells in the field will continue to be placed on stream during the remainder of 2007, Murphy Pres. and Chief Executive Officer Claiborne P. Deming said.

Meanwhile, Kikeh field development is continuing with additional wells expected to come on stream throughout 2008. Plateau production from the field is expected to reach 120,000 b/d of oil. Deming said.

Kikeh is being developed as a stand-alone facility with oil being produced from both subsea and dry tree wells on board a spar facility—the first application of its kind outside the Gulf of Mexico (OGJ Online, Jan. 30, 2007). The development also uses a floating production, storage, and offloading vessel.

Murphy also expects first sales of its associated natural gas via a dedicated pipeline to Labuan in the first part of 2008, Deming said.

Murphy is operator and holds 80% interest in Kikeh field. Petronas Carigali Sdn. Bhd. holds the remaining 20%.

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