KUALA LUMPUR, Malaysia -- Kikeh, Malaysia's first deepwater field, began production today.
Kikeh lies in 1,300 m (4,265 ft) of water in block K about 210 km (130 mi) from Kota Kinabalu, the state capital of Sabah on Borneo. Oil from Kikeh is moving through theKikeh truss spar floating platform to the Kikeh FPSO for further processing and storage.
Initial production of 20,000 b/d of oil is to be ramped up to 120,000 b/d by the end of 2008.
Murphy Oil Corp. operates the Kikeh field, with 80% interest. Petronas Carigali, an upstream unit of Petronas, holds the remaining shares.