Kinabalu

Kinabalu Oil Field Profile

Location and Geography

The Kinabalu oil field is located offshore in the state of Sabah, Malaysia, in shallow water. The field is situated within the Kinabalu Oil PSC (Production Sharing Contract) block, with a water depth of approximately 1,969 feet.

Operator and Ownership

The Kinabalu oil field is currently operated by Hibiscus Petroleum Bhd. The field is owned by Hibiscus Petroleum and Petroliam Nasional Bhd (PETRONAS), with Hibiscus holding the operating interest.

History

• The Kinabalu oil field was discovered in 1989.
• Initially, the field was under different operators, with Talisman Energy being awarded the licence in 2012.
• In later years, the operation and ownership transitioned to Hibiscus Petroleum Bhd.

Field Structure and Production

The Kinabalu oil field comprises several sub-fields, including Kinabalu Main, Kinabalu East, and Kinabalu Far East. The development of the field utilizes a Central Processing Platform (CPP).

• Production: The field has been in production since its discovery, with peak production achieved in 1998. As of recent reports, the field has recovered 88.23% of its total recoverable reserves. Production is expected to continue until the field reaches its economic limit in 2039.
• Current Production: The field currently produces an average of approximately 10,217 barrels of oil per day (gross) and 2,946 barrels per day (net) based on the 60% participating interest held by Peninsula Hibiscus Sdn Bhd.

Infrastructure and Transportation

• The oil and gas produced from the Kinabalu field are transported through pipelines to the Samarang facilities and then onwards to the Labuan Crude Oil Terminal for storage and export.

Contractors and Service Providers

Several contractors have been involved in the development and maintenance of the Kinabalu field, including:

• Sime Darby: Kinabalu Jacket
• TH Heavy Engineering: PCC Topside
• PCSB: Topsides
• MMHE: KNPG-B Platform
• Kencana: Drilling Jacket & Topsides
• Global Industries: Pipeline installation
• BC Petrochemical: CO2 Snuffing System & Various pumps.

Operational Performance

• The field experienced some unplanned platform interruptions, but these were offset by optimization measures. Further maintenance activities, well interventions, and project work are ongoing to enhance production. For example, contracting and procurement work for Electrical Submersible Pump projects are in progress to further boost production.

Economic and Production Data

• Production Volume: The field accounts for approximately 1% of Malaysia’s daily oil output.
• Operational Costs: The average production OPEX (Operating Expenditure) per barrel is around USD 14.15.

Future Outlook

The field is expected to continue production until 2039, based on current economic assumptions. Hibiscus Petroleum is focused on implementing various production enhancement initiatives to sustain the production trajectory and counteract natural decline.

Environmental and Safety Commitment

Hibiscus Petroleum, the current operator, is committed to upholding high standards of safety and environmental management. The company prioritizes corporate governance and transparency while expanding its business on strong technical and commercial foundations.