HOUSTON, July 12 /PRNewswire-FirstCall/ -- Newfield
Exploration Company (NYSE: NFX) on Saturday,
July 10, determined that an oil pipeline connecting the East
Belumut platform on PM 323 to the Tinggi platform (located
approximately 17 miles from East Belumut) was damaged by the
activities of an unidentified marine vessel unrelated to Newfield's
operations. Production from the field is shut in and the leak has
been isolated.
East Belumut is located approximately 160 miles offshore
Peninsular Malaysia in 240 feet of water. The field was producing
approximately 20,000 barrels of oil per day gross prior to shut-in.
Emergency response teams are actively working at the site. The
Company estimates that repairs to the pipeline will take 6-8 weeks
to complete and return the East Belumut field to production.
Newfield operates PM 323 with a 60% interest.
Newfield's deferred production in the third quarter of 2010 as a
result of the damaged pipeline is estimated to be 0.5 – 0.6 million
barrels. Including the impact of the deferred Malaysian volumes,
Newfield expects that its 2010 total company production will be at
the lower end of its previous guidance range of 283 – 288 billion
cubic feet equivalent.
Newfield Exploration Company is an independent crude oil and
natural gas exploration and production company. The Company relies
on a proven growth strategy of growing reserves through an active
drilling program and select acquisitions. Newfield's domestic areas
of operation include the Mid-Continent, the Rocky Mountains,
onshore Texas and the Gulf of Mexico. The Company has international
operations in Malaysia and
China.
**This release contains forward-looking information. All
information other than historical facts included in this release,
such as information regarding estimated or anticipated production
volumes and timing of repairs and other activities, is
forward-looking information. Although Newfield believes that these
expectations are reasonable, this information is based upon
assumptions and anticipated results that are subject to numerous
uncertainties and risks. Actual results may vary significantly from
those anticipated due to many factors, including the prices
of goods and services, the availability of support services, the
availability and cost of capital resources, labor conditions and
severe weather conditions (such as hurricanes). In addition, the
drilling of oil and gas wells and the production of hydrocarbons
are subject to governmental regulations and operating
risks.
For information,
contact:
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Investor Relations: Steve
Campbell (281) 847-6081
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Media Relations: Keith Schmidt
(281) 674-2650
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Email: info@newfield.com
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SOURCE Newfield Exploration Company