pix by Mohd Adam Arinin
KOTA KINABALU: Repsol Oil and Gas Malaysia Ltd expects an increased production from its Kinabalu block to an average of 16,000 barrels of oil per day (bopd) from the current 11,012 bopd with the new platform there.
Its director (Malaysia Business Unit) Jorge Milathianakis said they expect to reach this capacity by June next year once all 10 wells from the new bridge-linked wellhead platform (KNDW-D) are operational.
Speaking at the media engagement to announce the first oil production from the Kinabalu Redevelopment project, Milathianakis said they have achieve the first oil production from the new platform on October 29.
KNDW-D was successfully installed on June 8 this year, connected to the existing platform (KNDP-A).
The new platform and facilities will allow Repsol to fulfil its commitment to ‘breathe new life’ into the asset since the company assumed operatorship in December 2012.
Via the Kinabalu Oil Production Sharing Contract (PSC), Repsol holds a 60 per cent working interest, while Petronas Carigali holds the remaining 40 per cent of the Kinabalu field, located 55km west-northwest of Labuan and 28km southwest of Samarang.
The 20-year agreement which expires December 2032 will look at improving oil recovery and prolonging the life of Kinabalu field.
Kinabalu field was first discovered in 1989, with first oil production recorded on December 1997 and reached peak production of 40,000 bopd in 1998.
“Today I am pleased to say in a short four-year period (since PSC), Repsol and Carigali has invested over USD 156 million (RM656.3 million) and will invest another USD 150 million (RM631 million) for capital expenditure in coming years,” Milathianakis.
Meanwhile, its asset manager (Kinabalu asset) Shreeram Lom when briefing the media, said exploration efforts on Block SB309 off the west coast of Sabah is ongoing as they continue drilling in hopes of finding potential resources there.
Besides Kinabalu block and SB309 in Sabah, Madrid-based Repsol current operations in Malaysia include Block PM3 Commercial Agreement Area (CAA) covering 14 offshore oil and gas facilities straddling the Malaysia-Vietnam border.
Repsol also runs the PM-305 and PM-314 Blocks in the Peninsular Malaysia since 2002.
