Chim Sao start-up slated for 2011

Construction of the jacket for the Chim Sao wellhead platform off southern Vietnam was 37% complete by mid-year, according to operator Premier Oil.

Offshore staff

LONDON -- Construction of the jacket for the Chim Sao wellhead platform off southern Vietnam was 37% complete by mid-year, according to operator Premier Oil.

Chim Sao, close to the maritime boundary with Indonesia, is Premier’s first operated project offshore Vietnam. Early this year, the development plan was revised to cut costs by over $100 million. The new configuration involves drilling 14 wells from a single wellhead structure, with oil exported to an FPSO.

Premier is negotiating a lease agreement and EPCI contract for the FPSO with two contractors. It now expects to produce first oil from the field mid-2011.

Last month, Premier acquired Delek Energy (Vietnam) LLC and its 25% interest in block 12W, which includes Chim Sao. Recently, PetroVietnam confirmed it will exercise its back-in right to acquire a 15% stake in the PSC. This will leave Premier with a 53.125% controlling interest.

In Vietnam’s block 07/03, Premier’s first commitment well earlier this year intersected oil and gas pay within multiple stacked reservoir layers. The company has started acquiring 3D seismic to define the potential of this discovery and adjacent structures, and it plans to drill a second exploratory well during the fourth quarter.

Immediately to the south in Indonesia’s Tuna block, Premier says interpretation of a 2,400-km (1,491-mi) 2D survey looks promising. The company has contracted an 850-sq km (328-sq mi) 3D survey over the acreage late this year, ahead of planned wells in summer 2010.

Elsewhere offshore Indonesia, Premier has drawn up a five-year exploration plan for Natuna Sea block A. Due to re-phasing of the development drilling program it will now drill the Anoa Deep well next year.

08/28/2009

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