Talisman outlines E&P plans

Talisman Energy has budgeted $2.9 billion for exploration and development programs in the North Sea and Southeast Asia in 2010.

Offshore staff

CALGARY, Alberta -- Talisman Energy has budgeted $2.9 billion for exploration and development programs in the North Sea and Southeast Asia in 2010.

The company predicts capital spending in the North Sea of $1.8 billion, of which $160 million (9%) will be directed towards exploration. The plan also includes $300 million of non-cash capital expenditure (capitalized leases) in Norway.

In the UK, almost half the $800 million earmarked for development projects goes to the Auk North and Auk South satellite field developments, where first production is due in 2011 and 2012 respectively. Further outlay is planned on the Burghley development, expected onstream late this year.

Talisman is completing a well to test a northern extension of the Tweedsmuir field, and has lined up a full year of mobile exploration and development drilling elsewhere in the UK sector. It aims to re-start development drilling on the Claymore field and to begin the first phase of an upgrade to the Claymore compressors to improve field reliability.

Development planning should get under way shortly for the recent Cayley, Shaw, and Godwin discoveries, which are to be linked to an upgrade of the Montrose/Arbroath facilities.

In the Norwegian North Sea, Talisman’s immediate focus is on bringing onstream the Yme redevelopment, with first oil due in the second half of this year. It also has committed to a 10-well development program for the Varg, Gyda, and Brage areas. Talisman plans to drill two exploration wells in the Norwegian sector, and will appraise its 2009 Grevling discovery.

In Southeast Asia, the company has allocated $1.1 billion in 2010, with exploration accounting for $280 million (26%). Work is to include a 16-well infill drilling program at PM-3 CAA off Malaysia/Vietnam, platform upgrades, and planning for the Phase II incremental oil recovery project.

Offshore Indonesia, Talisman plans to start its Makassar Strait drilling program with two wells in the Pasangkayu block, and to acquire seismic in the Andaman III block. Off Malaysia, it plans to drill a deep exploration well in the PM-3 block and to reprocess seismic over the two Sabah exploration blocks awarded in late 2009.

Elsewhere in the region, the company expects to secure approval for its HSD/HST oilfield developments offshore Vietnam, and to start development of the Kitan discovery offshore Australia.

01/11/2010

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