EXPLORATION

Murphy to concentrate on West Patricia, Kekir on backburner

Industry sources are speculating that Malaysia's first deep water oil find - Kekir - will not be developed this year. Instead, the company responsible for the discovery, Murphy Oil, will concentrate mostly on its West Patricia field off the coast of Bintulu, Sarawak.

The well placed source said that the reason for keeping Kekir on the shelf was due to a variety of factors, including uncertainty of the size of the discovery and that the depth of around 4,800 feet makes it a difficult proposition at best. Until further notice, said the source, Kekir will be a "wait-and-see" affair.

This view is reinforced by a technical expert who said the depth of the field makes for some difficult decisions ahead. The expert, who preferred to remain unnamed said, "since the seabed is so deep, it is not logical to make a jacket that reached all the way to the seabed because it would cost and weigh too much.

"It would be more logical - in this situation - to use a FPSO or a drilling vessel to get the job done.

"It is feasible, just expensive. Other countries have a bigger platform that can do this job but the field must justify the means," added the expert.

Since Kekir is in the pipeline, according to the source, Murphy will concentrate on its confirmed yields at West Patricia. In fact, the company is due to award a contract for a third rig for the field with plans to have a total of 10 rigs operating in West Patricia.

"The field should be developed after an estimated 10 platforms," said the source who added that the remaining platforms would be commissioned as and when need be. The source also confirmed that West Patricia is being given full attention as Murphy's experts believe that the field has more reserves than previously expected. It currently produces around 15,000 barrels per day of crude.

Although the contract for the new rig has yet to be awarded, Energyreview.net's contacts suggest it is a close tie between Brooke Dockyard & Engineering Works Corp, based in Kuching in Sarawak, and HL Engineering (M) Sdn Bhd based near Kuala Lumpur. The latter has confirmed that it has made a bid to fabricate the new rig.

West Patricia is located approximately 25 miles from the coastal port of Bintulu.

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