Chim Sao construction gains momentum

Premier Oil has issued the main construction contracts for the Chim Sáo development offshore southern Vietnam. EOCP was contracted to convert the Lewek Emas into an FPSO vessel with production capability of 50,000 boe/d and oil storage capacity of 680,000 bbl.

Offshore staff

LONDON-- Premier Oil has issued the main construction contracts for the Chim Sáo development offshore southern Vietnam. EOCP was contracted to convert the Lewek Emas into an FPSO vessel with production capability of 50,000 boe/d and oil storage capacity of 680,000 bbl.

PTSC won the EPCI contract for engineering, construction and installation of the wellhead platform, infield flowlines and gas export pipeline. Fabrication of the platform under interim arrangements was 64% complete by end-October, with offshore installation scheduled for summer 2010.

Premier expects the contract for the Chim Sáo drilling rig to be awarded this month, with development drilling due to start in mid-2010. First production from the field is slated for July 2011.

Following the company’s Cá Rong Do discovery on Block 07/03 in June and subsequent acquisition of 3D seismic data over the eastern side of the block, a second well is due to spud imminently. This will target the Cá Rong Vang prospect with potential reserves estimated at 30-100 MMboe. The location is around 6 km (3.7 mi) northwest of Cá Rong Do. Further drilling is likely in mid-2010.

As for Premier’s interests offshore Indonesia, production from the Anoa field has risen by 5% in recent months, helped by strong gas demand from Sembgas in Singapore. Premier estimates annual production from Anoa this year at 8,600 boe/d.

However, there has been a temporary loss of production on the Kakap field due to the replacement of the FPSO, which is due to be completed before end-November. Estimated average production for the year from Kakap is 2,400 boe/d, down from 3,800 boe/d in 2008.

Premier reports good progress on the Gajah Baru project, the first of three fields under development to supply additional gas to Singapore and Batam under new Gas Sales Agreements (GSAs) signed in 2008.

The EPCI program, awarded in May, is now 30% complete and remains on schedule. Fabrication has started in Batam both on the central process facility at the PT SMOE yard and on the wellhead platform at the sub-contractor Nippon Steel’s yard.

Tendering for the jackup to drill the initial five wells, and an infill program on Anoa, is due to start shortly, while a tender is under way for the additional facilities required at the onshore reception facility in Singapore. Development drilling should begin next October, following installation of the wellhead platform, leading to first gas by October 2011.

Elsewhere off Indonesia, Premier says an 850-sq km 3D seismic survey was shot over the Tuna Block in September and processing should be completed early in January. Two wells are planned for later in 2010.
11/19/2009

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