HOUSTON – ConocoPhillips said Wednesday that natural gas production has begun at the Kebabangan gas field, which is about 60 miles offshore Malaysia.
“This is the third major project startup planned in Malaysia this year, with Siakap North-Petai brought on stream in the first quarter and the Gumusut-Kakap floating production facility starting up in October,” Matt Fox, executive vice president of exploration and production for Houston’s ConocoPhillips. “These projects will contribute to the company’s organic growth over the coming years.”
Startups in Malaysia are expected to add about 60,000 barrels of oil equivalent per day to the company’s production volumes by 2017.
The Kebabangan drilling and production platform is located in a water depth of approximately 450 feet. Production will initially use six wells with gas sent via pipeline to the Sabah Oil and Gas Terminal in Kimanis.
The field is operated by Kebabangan Production Oil Co., a joint venture in which ConocoPhillips Sabah and Shell Energy Asia each hold a 30 percent interest. Petronas holds a 40 percent interest.
To facilitate production, Kebabangan built a platform able to process up to 825 million cubic feet per day of natural gas, 80,000 barrels of crude oil and 22,000 barrels of condensate.
ConocoPhillips first announced its expanded Malaysia venture in 2010, when it said it would partner with Petronas to establish a greater foothold in the country.
During the company’s third quarter earnings call with investors in October, ConocoPhillips said profit and production were climbing, but that it expected its capital expenditures to tail off in 2015 due to falling oil prices.
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