Kikeh

Kikeh Oil Field Profile

Location and Geology

The Kikeh oil field is located in Block K, offshore Sabah, East Malaysia, approximately 120 km northwest of the island of Labuan. It is situated in water depths of around 1,330 meters (4,380 feet).

Discovery and Development

• The field was discovered in August 2003 by Murphy Oil.
• In 2004, further drilling, including the Kikeh 7 appraisal well, confirmed the down-dip limits of the field and discovered oil deposits at lower depths.

Operators and Partners

• The field is operated by PTTEP Sabah Oil, although initially it was operated by Murphy Sabah Oil Company on behalf of its partner Petronas Carigali. Other partners include Petroliam Nasional (Petronas) and PTT Public.

Field Characteristics

• Kikeh was the first deepwater development in Malaysia and the Asia Pacific region.
• The field has a recoverable reserve base estimated to be between 400 to 700 million barrels of oil.

Production Facilities

Spar Dry Tree Unit (DTU)

• The field features a truss spar floating production platform or DTU, measuring 142 meters long and 32 meters in diameter.
• The spar includes topside facilities, a hull, a mooring system, and riser/wellhead systems. It has a 25-slot well bay for dry tree wellheads.
• The spar was designed and constructed by Technip Marine (Malaysia) and built at Malaysia Shipyard & Engineering’s facility in Pasir Gudang, Johor, Malaysia.

Floating Production, Storage, and Offloading (FPSO) Vessel

• The FPSO Kikeh is located in 1,350 meters of water and is owned by MDFT Labuan and operated by MDPX Sdn Bhd, joint ventures between SBM and Misc Berhad.
• The FPSO is a converted tanker built in 1974, with an overall length of 337 meters, a breadth of 54.6 meters, and a deadweight of 273,000 tons.
• It has a storage capacity of two million barrels and is designed to remain in the field for 20 years.
• The FPSO can process oil at a rate of 120,000 barrels per day (bpd) and water injection at 260,000 bpd, with gas compression capabilities of 135 million cubic feet per day.

Production History

• The first oil from the field was achieved in August 2007, with a production ramp-up to 120,000 bpd.
• Peak production was reached in 2009, and based on economic assumptions, production is expected to continue until the field reaches its economic limit in 2027.

Contractors and Services

• Technip: Awarded contracts for the engineering, design, supply, and installation of the Kikeh Area Development subsea pipeline and riser system, as well as the engineering, construction, and installation of the spar floating production platform.
• Aker Solutions: Supplied a subsea production system and umbilicals for the project.
• SapuraAcergy: Completed the engineering, procurement, installation, and commissioning of a 138 km, 12-inch diameter export pipeline.
• Menck: Installed mud mats and mooring piles.
• Reach Integrated: Responsible for preventive and corrective maintenance activities for the Kikeh FPSO unit.
• Intec Engineering: Provided follow-on engineering services, including detailed design review of field facilities and design of the fluid transfer line connecting the spar to the FPSO.

Technological and Operational Innovations

• The Kikeh project marked several "firsts":
  • First deepwater development offshore Malaysia.
  • First spar constructed and installed in Malaysia.
  • First spar installed outside the Gulf of Mexico.
  • First topsides floatover onto a spar.
  • First turret-moored FPSO in conjunction with a spar.
  • First use of a tender-assisted drilling rig on a spar.

Economic and Operational Impact

• The project involved significant capital expenditures, projected at approximately $1.4 billion.
• The field currently accounts for approximately 1% of Malaysia’s daily oil output.
• The use of a spar dry tree unit and FPSO has enhanced recovery, reduced drilling expenses, and lowered life-of-field operating expenditures.