On 13 March, the Yetagun Gas Sales Agreement was signed by the MOGE, Texaco, Premier, Nippon, PTTEP, and Thai state oil company PTT, which is the purchaser of the gas. PTT has agreed to pay a base price of US$3 per one million BTU for the gas, which will be supplied at an initial rate of 200 million cf/d in 1999.
In PSCA 04/36 in the Bohai Gulf, Kerr McGee is currently preparing to test delineation well Caofedian (CFD) 2-1-2, having drilled to a TD of 4,000 meters. The well was spudded on 17 January using the Bohai 4 jackup. Following the testing program, which is anticipated to last approximately three weeks, Kerr McGee will spud a second appraisal of the CFD 2-1-1 discovery and then a wildcat in PSCA 05/36.
Also in the Bohai Gulf, Texaco spudded wildcat Bozhong (BZ) 27-5-1 in PSCA 11/19 on 5 March, in the first of a three firm wells program in PSCAs 11/19 and 09/18, using the Bohai 12. The well, which is located in the north-central area of the tract adjacent to COBHC's BZ 34-2/4E oil field, is currently drilling ahead towards a prognosed TD of 4,000 meters.
In the Kakap PSC in the West Natuna Sea, Clyde Petroleum's Nelayan-1 has reached a depth of 2,211 meters, and is setting 9 5/8-inch casing at 2,205 meters. The deviated well has a prognosed TD of 3,340 meters, to test Oligocene-Miocene Gabus and Arang Formation sandstone.
Arco's Vorwata-2 delineation well in the offshore Berau PSC in the Bintuni Basin of western Irian Jaya, is currently drilling ahead at a depth of 3,264 meters. The well, which was spudded on 14 February at a location approximately 17 km southeast of the Vorwata-1 gas discovery, will target Upper Paleocene, Cretaceous, Upper and Middle Jurassic sandstones at a PTD of 4,284 meters.
On 19 March, Esso Production Malaysia signed two PSCs for SB-302 and deepwater SB-H, offshore Sabah. Equity in the tracts is split between Esso (80%, operator) and Petronas Carigali (20%). The blocks cover acreage previously held by British Gas in the SB-2 contract area and represents Esso's first involvement in Sabah since 1986. The new contracts are understood to incorporate the new "revenue over cost" formula.
In Block PM-9 in the Malay Basin, Carigali's Irong-3 (ST) has now been completed as an oil well after reaching a TD of 2,128 meters. The well, which was sidetracked due to mechanical problems, had targeted the Miocene sandstones which flowed oil in Esso's 1978 Irong-1 well, at a PTD of 1997 meters.
In late March, the Malaysia-Thailand Joint Authority announced that drilling and testing operations on CPOC's Muda-4 in Block B-17 have successfully been completed. The well, which was drilled to a TD of 2,641 meters, recorded a combined flow rate of 18.4 MMcf/d gas and 122 b/d of 52-degree API condensate from two DSTs over intervals between 1,266-1,734 meters. Muda-4 is located 3.5 km west of the Muda-1 gas/condensate discovery. The Actina semisubmersible is now being moved to a new location in B-17 to spud wildcat Amarit-1.
Elsewhere in the JDA, CTOC has spudded wildcat Senja-1 in Block A-18 in the Malay Basin using the Falcon semisubmersible. The well is located in the northwest corner of the block and is understood to be on trend with Total's BK-DEL-4 gas well on the southern margin of the Bongkot Field.
Malaysia's state company Petronas Carigali has stated that it is optimistic about the prospects for the Dai Hung Field, the operation of which it recently took over from Australia' BHP. Petronas President Hassan Marican stated that "We feel we can better optimize the cost and therefore make it viable to operate", and that he believed that Petronas can "derive synergy and more efficiency from the field" as the company is also producing from the nearby Ruby Field. "Different operators have different operating philosophies [and] cost structures, in the case of Petronas, it was our presence in Blocks 1 and 2."
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