* Says repairs to take 6-8 weeks * Sees deferred production
of 0.5-0.6 mln barrels in Q3 * Sees 2010 production at lower
end of 283-288 bcfe * To complete clean-up efforts in the next
* Shares down 3 pct
(Recasts; adds analyst, company comments, share movement)
By Thyagaraju Adinarayan
BANGALORE, July 12 Oil and gas company Newfield
Exploration Co (NFX.N) said it shut down a damaged Malaysian
oil pipeline, and cut its full-year production outlook to the
lower end of its prior view.
The company said production from the field was shut and the
leak has been isolated and expects deferred production of 0.5
million-0.6 million barrels in the third quarter.
"It is a pretty small piece of overall production ...
Malaysia rates about 8 percent of our overall production," Vice
President Stephen Campbell told Reuters.
In a statement on Monday, the company said it now expects
2010 production to be at the lower end of the 283 billion cubic
feet equivalent (bcfe)-to-288 bcfe range.
The pipeline was damaged by an unidentified marine vessel
unrelated to Newfield's operations, the company said.
The resultant oil sheen at the East Belumut field, off
Malaysia's eastern state of Terengganu, follows the disastrous
BP (BP.L) (BP.N) oil spill at the U.S. Gulf of Mexico in April.
Campbell said the leak will not have any impact on the
shorelines, adding that the company had been actively working
to remediate the leak on the surface.
"The clean-up efforts will be done in next several days.
There was no significant amount of oil on the surface."
East Belumut is located about 160 miles offshore Peninsular
Malaysia, in 240 feet of water and was producing about 20,000
barrels of oil per day gross prior to shut-in, the company
Jefferies & Co analyst Subash Chandra said the production
shortfall was a 1 percent reduction in 2010 volumes and not
He said damage to the pipeline damage could result in about
$30 million to $35 million in lower cash flows.
Newfield estimates that repairs to the oil pipeline
connecting the East Belumut platform on PM 323 to the Tinggi
platform will take 6 to 8 weeks to complete and return to
Malaysian state oil company Petronas had said on Friday it
shut down pipelines at an oil platform after discovering an oil
sheen near facilities it shared with Newfield and the Malaysian
unit of Exxon Mobil (XOM.N). [ID:nSGE669EL1] Shares of
Houston-based Newfield were down 3 percent at $50.35 Monday
late morning on the New York Stock Exchange.
(Reporting by Thyagaraju Adinarayan in Bangalore; Editing by
Jarshad Kakkrakandy; Unnikrishnan Nair)