Malaysia Production Slump After Leak on Shell Platform

SEATTLE (Oil Monster): Exports of Malaysia’s flagship Kimanis crude oil will fall next month and in November following a reported leak in a compressor at Shell’s Gumusut-Kakap project offshore Sabah, according to news agency Reuters.

It said that a leak was discovered on a compressor unit at Gumusut-Kakap that had been shut down in August for maintenance.

Citing sources with knowledge of the issue, Reuters added that one of the partners – PetroleumBrunei – had cancelled a tender to sell a Kimanis crude cargo supposed to load in early November because of the problem.

Kimanis crude production is now at a reduced rate of around 117,000 barrels per day and the volume of each cargo loading in October has also been reduced.

The compressor unit, which was supposed to resume operations this month, will now remain shut until repair works are carried out in November.

Upstream has approached Gumusut-Kakap operator Shell and Malaysia’s national oil company Petronas for comment.

Anglo-Dutch supermajor Shell operates the deep-water Gumusut-Kakap and Malikai field development offshore Sabah, that have combined peak output of 170,000 bpd of Kimanis oil, added Reuters.

The Kimanis sweet crude, which accounts for the majority of Malaysia’s oil exports, is also produced at fields with partners including ConocoPhillips, PTTEP and Pertamina.

 Courtesy: www.reuters.com