ASIA/PACIFIC

Peter Tang
Singapore

Conoco's new Natuna Sea award. [43,559 bytes]
Unocal's Hijau Besar discovery. [71,006 bytes]

Brunei: Elf's Daya well gas producer

In Baram Delta Basin Block B, Elf's MLJ1-01 Daya appraisal well on the Maharaja Lela/ Jamalulalam Field was drilled to TD at 3,932 meters MD. During drilling, gas had been encountered in the objective Z1 Sand. As per the prognosis, the well was plugged back to 2,970 meters from which depth the Producer Leg was kicked off. The Daya Leg was designed to evaluate the hydrocarbon prospectivity of Upper Miocene reservoirs in the undrilled Daya Panel. The Producer Leg will be drilled through the Jam Barat Panel into the ML West Panel and will then be completed as a gas producer.

China: Chengdaoxi appraisals underway

EDC drilled appraisal well CB-18-1 in the southern Bohai Bay Chengdaoxi PSCA in the offshore North China Basin using the Shengli Offshore Drilling Co. rig Shengli-6. This well was the first of two planned appraisals. CB-18-1 is located immediately adjacent to the coastline and had a planned TD of 1,700 meters. The well reached TD of 1,670 meters and testing was carried out. No official reports of the test program have been received; however, it is understood the well has been completed for future production.

The two wells are to appraise the offshore northwestern extension to an oil pool in the Shengli Fields Complex. According to Chinese sources, the block is reported to have 400 million bbl of proven oil in place.

Elsewhere in the Bohai Gulf, COBHC spudded QHD 27-2-1 using the Bohai-9 jackup in 22 meters of water. Planned TD was 2,230 meters. The well reached TD at 2,269 meters in the Palaeogene Dongying Formation. Log interpretation indicated the presence of four oil zones with a thickness of 11.5 meters with good oil shows being reported at 926.5 meters and 1,473.5 meters. The interval between 1,067-1,069 meters was then tested.

Indonesia: Drilling, contracting heating up

Four new offshore contracts have been awarded in a signature ceremony in Jakarta:

South Sokang PSC: This contract, covering an area of 11,250 sq km in the easternmost part of the Natuna Sea in Indonesian waters, was awarded to YPF South Sokang in partnership with Conoco and Coparex. YPF will operate the contract area with 45% equity, while Conoco will retain 45% and Coparex 10%. The contract contains a financial commitment of $46.5 million over 10 years. The firm first three-year work program commitment, however, is just $3 million. It has been revealed that the partnership will shoot a new seismic program under the terms of the initial three-year commitment, but will not drill any wells until the fourth and sixth contract years.
Karapan PSC: The contract, covering an area of 4,000 sq km in the North East Java Sea, was awarded to PT Wirabuana. The contract was awarded on the basis of payment of signature bonus of $900,000. The contract contains a financial commitment of $49.9 million over 10 years. The Karapan PSC was negotiated directly by PT Wirabuana over a period of several months.
Ketapang PSC: The contract, covering an area of 4,433 sq km in the North East Java Sea and north of Madura Island, was awarded to Gulf Resources (Ketapang) after an open bid round in late 1997. The contract was awarded on the basis of payment of signature bonus of $1.1 million. The contract contains a financial commitment of $43.9 million over 10 years.
Walo PSC: The contract, covering an area of 6,843 sq km in the offshore area of western Irian Jaya and offshore Misool Island, was awarded to Total. The contract contains a financial commitment of $29.2 million over 10 years.

Indonesia: More Hitam Besar action

Unocal completed two appraisal wells on the Hitam Besar discovery in the Kutei Basin East Kalimantan PSC. Hitam Besar-3 has been completed as an oil and gas discovery. The well was drilled at a location 22 km east northeast of the Attaka oil field in 433 meters of water. The well was drilled by PT Hightech Drilling's Sedco 602 semisub. The primary targets of the well were Pliocene channel sandstones and Miocene slope-basin fan sandstones at the location. The well was drilled to TD at 2,196 meters.

Hitam Besar-4 was also completed as a gas discovery. The well was spudded at a location 1.7 km north of the Hitam Besar-3 location. It is situated in 459 meters of water and was drilled by the Sedco 602 semisub. The well was drilled to TD at 2,329 meters, after setting two strings of casing in the wellbore (9 5/8-in. to 1,157 meters; 7-in. liner to 1,991 meters). Unocal also drilled three successful completions on the Hijau Besar discovery in Kutei Basin Makassar Strait Block 'A' PSC.

Hijau Besar-3 was plugged and abandoned as a gas discovery. It is situated in 586 meters of water and was drilled by PT Hightech Drilling's Sedco 602 semisubmersible. The primary targets of the well were an Upper Miocene deepwater sandstone section.

Hijau Besar-3 (ST2) has been plugged and abandoned as a gas discovery. Metulang-1, drilled by Total in the Kutei Basin Offshore Mahakam PSC was plugged and abandoned as a gas well. Metulang-1 represented the second exploration well to be drilled by Total in the contract area in 1998 and was again located in Area II in the southern part of the off Mahakam PSC.

Philippines: New GSEC awarded

GSEC 97 was awarded to Dragon (Far East) Ltd (85%) and partners Philodrill, Petrofields, and Seafront Resources. The 14,600 sq km tract is located on the Reed Bank in the South China Sea. The GSEC has been granted for an 18-month initial exploration period.

Vietnam: Petronas signs unitization

A pre-unitization agreement (PUA) had been signed between Petronas and Petro Vietnam covering the extension of the Bunga Kekwa Field from the PM-3 Commercial Area into Vietnamese waters covered by Fina's Block 46, the extension delineated by the latter's 1997 46-CN-1X oil and gas discovery. The PUA will permit the parties involved to begin work on the potential unitisation of the field allowing the incorporation of the Vietnamese extension into the ongoing overall field development.