First Gas Flows from Kebabangan Field Offshore Sabah, Malaysia

ConocoPhillips Co. announced Wednesday the commencement of gas production from the Kebabangan (KBB) gas field, located approximately 60 miles offshore the north west coast of Sabah, East Malaysia.

Gas production from the KBB field, initially utilizing six wells, will be ramped up as pipeline capacity becomes available, with the gas exported via pipeline to the Sabah Oil and Gas Terminal in Kimanis, the firm said in a press release.

The Kebabangan integrated drilling and production platform is located in a water depth of approximately 450 feet.

Partners in the Kebabangan Production Oil Company (KPOC), which is the field operator, are ConocoPhillips Sabah Ltd. and Sabah Shell Petroleum Company Ltd. each holding a 30 percent interest, while Malaysia's state-owned Petroliam Nasional Berhad's upstream subsidiary Petronas Carigali Sdn Bhd holds the remaining 40 percent stake.

“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 ... These projects will contribute to the company’s organic growth over the coming years,” said Matt Fox, executive vice president of Exploration and Production added in the announcement.

ConocoPhillips revealed that the project startups in Malaysia are expected to add approximately 60,000 barrels of oil equivalent per day (boepd) to the firm’s production volumes by 2017, with these high-margin barrels an important part in the company’s overall plan to deliver annual 3 to 5 percent production and margin growth.

KPOC sanctioned the development of the Kebabangan field in early 2011.

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