Oilex seeking replacement rig for Timor Sea wells

Oilex is aiming to conclude agreements concerning an offshore drilling project in block JPDA 06-103 in the Joint Petroleum Development Area (JPDA) of the Timor Sea.

Offshore staff

PERTH – Oilex is aiming to conclude agreements concerning an offshore drilling project in block JPDA 06-103 in the Joint Petroleum Development Area (JPDA) of the Timor Sea.

The company is looking to farm out part of its 25% operated interest in the JPDA to reduce its financial exposure. It describes this as an attractive oil exploration opportunity, with the potential to host significant reserves near to existing fields already in production, and also to Eni’s Kitan oil discovery.

During the second quarter of the year, mapping of prospects in the JPDA was completed. The joint venture partners singled out the Lore and Lolotoe structures – both in water depths of below 400 m (1,312 ft) – as the first two candidates for drilling. Lore has prospective resources in the range 20-515 MMbbl, and Lolote 14-22 MMbbl.

Transocean has terminated a contract entered into by the partners last year for the semisubmersible Transocean Legend following Nexus’ decision to cancel a prior contract for the rig.

The partners are pursuing other options – Oilex points out that the Transocean Legend’s deepwater capability would not have been necessary in any case for the wells on Lore and Lolotoe, and more rigs are currently available than was the case when the contract was signed in 2008.

The joint venture has also applied to ANP for an extension to the production-sharing contract to allow the wells to be drilled under a revised schedule.

07/23/2009

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