Murphy set to extend Kikeh floater contract

Offshore: young sea gypsies sit on their boat on the Sabah coast

REUTERS

By TAN HWEE HWEE Singapore

 31 May 2012 22:59 GMT

US INDEPENDENT Murphy Oil is set to extend its contract covering the Kikeh floating production, storage and offloading vessel in line with its Siakap North-Petai subsea development and an alternative proposal tabled for the Kakap field off Sabah, Malaysia.

Subject to approval from Malaysia’s national oil company, Petronas, sources said a deal could be finalised within weeks with the FPSO joint venture partners— Monaco-based SBM Offshore and Malaysia’s MISC— for an extension on the Kikeh floater lease until 2022.

The Kikeh FPSO will undergo modification to handle up to another 70,000 barrels per day of crude output. It will be installed with an additional riser, a crude separation system and extra modules to boost its gas compression, water injection and crude separation system.

Projected output from Siakap North-Petai is understood to be…

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