Repsol achieves its first oil production

Posted on : 12-11-2017 | By : sabah today | In : Local Business

Kota Kinabalu: Repsol Oil & Gas Malaysia achieved its first oil production from its Kinabalu Redevelopment Project in Kinabalu field on Oct 29 this year, just nearly two months after drilling activities commenced.

Its quick success started when a new bridge-linked wellhead platform was safely installed on June 8 this year by Repsol, which operates the Kinabalu Block.

The new platform and facilities, which are connected to the existing platform, will allow Repsol to fulfil its commitment to breathe new life into the asset, located 55km west of Labuan, since assuming operatorship in late 2012.

The 2,900-tonne platform, 1,570-tonne topside, 1,336-tonne jacket and 318-tonne bridge were built in a Kuching-based fabrication yard involving a workforce of over 1,000 personnel comprising construction workers, sub-contractors and company project management team.

The onshore construction phase recorded 1.3 million man-hours without a single lost time injury (LTI).

Repsol and Petronas Carigali have invested over USD156 million out of USD305 million capital expenditure to increase oil recovery and production over the life of the Production Sharing Contract (PSC).

This is expected to add to the list of oil fields in Malaysia.

“With these investments, we have managed to increase production of the asset significantly through drilling of new wells.

“As Malaysia is an important investment portfolio for Asia Pacific, we are looking forward to expand our business in this country and are committed to help create employment and business opportunities for Malaysians,” said Repsol Malaysia Business Unit Director Jorge Milathianakis.

With the new facilities and wells, production from Kinabalu is expected to increase to 15,000 barrels of oil per day with 30 million standard cubic feet per day of non-associated gas.

Repsol holds a 60 per cent working interest and operation while Petronas Carigali the remaining 40 per cent.

The commemoration of the first oil event was officiated by Head of State Tun Juhar Mahiruddin and company executives at the Kinabalu facilities offshore, Thursday. – Leonard Alaza

SOURCE:- THE BORNEO POST

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