Africa
Marshall DeLuca
BHP has announced that first oil pro duction from the Laminaria and Corallina development in the Timor Sea offshore Australia is expected in the fourth quarter. Peak production on the development is expected to be 150,000 b/d of oil. Production drilling on the field is underway. BHP holds 32.6% in Laminaria and 25% in Corallina with partners Woodside, with 50%, and Shell, with 25%.
Statoil has completed its withdrawal from Thailand. Statoil decided last year to withdraw from Thailand as part of a plan to concentrate its international assets in a few selected core areas. The first step was taken when the company sold its interest in the Bongkot gas field last year. Now the company has sold 35% of its 45% interest in the B 10/32 gas field to Unocal along with Statoil's 20% interest in Block W8/38 and W9/38 in the Andaman Sea. The remaining 10% in B 10/32 was sold to Mitsui Oil Exploration. Unocal now holds an 80% interest in B 10/32 and Mitsui holds 20%.
Central Asia
The Memorandum of Understanding for an additional pipeline to the Caspian Sea has been signed. The partners in the Karachaganak Field in Kazakhstan signed the agreement to construct a $280 million oil pipeline from the field to the Caspian where it will link with the export line from the Tengiz Field to the Russian Black Sea port of Novorossiysk. The pipeline will have an annual capacity of 7 million tons. The operators of the field are BG and ENI, each with a 32.5% interest, along with partners Texaco (20%) and LUKoil (15%).
Russian President Yeltsin has given the approval for a production sharing agreement on the Kirinsky Block off Sakhalin Island. Kirinsky is part of the Sakhalin III project and covers 7,500 sq km with estimated reserves of 4 billion bbl of oil. Drilling will begin next year by the operating consortium Pegastar Neftegaz comprised of Mobil, Texaco, and Rosneft-SMNG/KMK, each holding 33%. In addition, approval was given for a new licensing round offshore Sakhalin to be held later this year.
Azerbaijan's Parliament has approved a $2.3 billion agreement between SOCAR and four Japanese companies for the oil fields in the Caspian Sea. Under the agreement, Japan Petroleum Exploration, Indonesian Petroleum, and Itochu will hold a 22.5%, 12.5%, and 7.5% stake, respectively, in the exploration and development of the Atashgyah, Janan Tava, and Mugan Deniz fields. SOCAR will hold the remaining 50%. The agreement allows the companies a 25-year period for the exploration and development of the fields with a commitment of drilling at least two exploration wells in the next three years and one additional well if any of these is a discovery.
Europe
Norway has granted Saga approval for development and operation of the Borg Field in the North Sea. Production began on the field last month. The field has recoverable reserves of 75 million bbl. The initial production was 15,000 b/d of oil from the first phase, with a peak planned for 30,000 b/d by 2001. A subsea installation is also planned for the field's development.
Saga has given Procon Drilling Services a contract for drilling, well workover, and drilling equipment and systems maintenance for the Snorre TLP and Snorre B. The contract is for three years with two options of two years each. Operations will begin in October.
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Volume 59 Issue 8
August 1999
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