Malaysia's Kimanis crude output falls on technical issues: sources

OUTPUT of Malaysia's key export crude grade Kimanis has dropped further this month after technical issues unexpectedly occurred at the 2 offshore oilfields that produce the oil, 2 sources with knowledge of the matter said.

Production at the Gumusut-Kakap and Malikai deepwater fields, off the coast of Sabah, had been expected to fall on a scheduled maintenance at the Sabah Oil and Gas Terminal (SOGT), which processes oil and gas produced from the region's offshore fields.

However, just before the maintenance at terminal scheduled for mid-May, technical issues cropped up at both fields, forcing operator Shell to reduce output further, one of the sources said.

It was not immediately clear how much output was lost, but the source said some cargoes scheduled to load in May will likely have to be deferred.

Shell and Petronas did not immediately respond to requests for comment.

The fields have a combined Kimanis crude output at 170,000 barrels per day at peak. REUTERS