Asia-Pacific
Australia. The $35 million Longtom-3H (horizontal) well has intersected a total of 3,379 ft of gross gas, according to Australian-Canadian Oil Royalties Ltd. Still drilling at this writing, the remaining objective for the Longtom-3H well is to confirm sufficient long-term gas flow rates. Longtom-3H has confirmed that major gas sands identified in the Longtom-2 well are continuous in both dip and strike directions.
One of the five reservoir sands encountered had a gas column of approximately 919 ft, and Longtom-3H has intersected gas below this reservoir confirming a deeper gas/water contact.
Plans are to complete and flow test both the upper and lower gas sands to confirm their productivity. Subject to a successful flow test, the operator of VIC/P54 is confident that Longtom will proceed to full field development. The operator has said that the Longtom-3H helped define a substantial reserves base and a field development decision is likely to be made by late 2006. A second Longtom development well is planned for late 2007.
The well is being drilled by theOcean Patriot.
Current plans call for gas from VIC/P54 to be processed through Santos’ existing Patricia Baleen facilities near Orbost in Victoria. The Longtom Gas Sales Agreement with Santos is conditional on the successful completion of the Longtom-3H. First gas is anticipated to flow from Longtom by mid-2008.
In other Australian developments, the Peak Group Asia Pacific has contracted to provide services for drilling of at least 13 offshore exploration and development wells off Australia over a two-year period using the jackupWilCraft starting in 1Q07.
Peak will provide rig and support services, and project management to some of the participating operators. The drilling program involves Australia-based operators and wells in the North West Shelf, Browse basin, and Timor Sea.
Woodside Petroleum Ltd. expects first oil from the $720-million (Woodside share $432 million) Vincent oil project in 2008 with initial output of 100,000 b/d.
Woodside said it has hedged some production to more effectively manage the economic risk associated with the Vincent project, which was approved in March 2006. Woodside also said it signed a heads of agreement with Japan’s Kansai Electric Power Co. for the supply of between 1.75 and 2 million metric tons of LNG a year over 15 years from the Pluto LNG project.
After updated interpretations from Pluto-3 and Pluto-4 well appraisal information, the current best estimate dry gas contingent resource (excluding inerts, no allowance for future fuel and flare) was increased to 4.1 Tcf, an increase of 14% over the previously reported 3.6 Tcf.
Woodside’s Otway gas project also is proceeding, with start-up scheduled for Q406. Platform construction is near completion, offshore commissioning has started, and onshore gas plant installation is progressing.
Indonesia. Indonesia’s state owned oil and gas company, PT Pertamina, has started feeling the heat of free competition in the deregulated domestic market but its president director Ari Soemarno still plans to transform the enterprise into an international energy group within five years.
Soemarno conceded that the company was facing shortage of funds to transform many of its projects, which include a $1 billion retail market revamp.
Pertamina, the former manager of the country’s hydrocarbon resources, has undergone tremendous structural changes, leaving it to compete as a national company in both the upstream and downstream business. It was formed in 1971. Pertamina was revamped under new Oil and Gas Law and regulations introduced in 2001 and 2003 to address issues of management problems.
Thailand. Upstream operator PTT Exploration and Production Plc (PTTEP) is to spearhead Thailand’s search for energy resources in the Middle East and Africa, mainly through share swaps with foreign partners.
In disclosing this, the Energy Ministry permanent secretary Cherdphong Sirivit said the strategy was needed to ensure dependable supplies of energy as the country continues to face unpredictable global oil prices.
“The ministry, therefore, has a key policy of buttressing energy security by deploying PTTEP as the leader for it,” he said. He singled out the Middle East and Africa oil-rich basins, highlighting that PTTEP was already investing in energy projects in Sudan, Oman, Iran, and Algeria.
Thailand expects to offer the onshore Sirikit field among assets for the share swap scheme, eyeing partnerships with international operators, including China’s national oil groups and Total. The Petroleum Authority of Thailand (PTT) subsidiary is involved in E&P in Bongkot, Sirikit, PTTEP 1, Arthit, L22/43, L53/43, L54/43, G 9/48, and G 12/48, as well as joint venture projects -- E 5, Unocal III, Pailin, G4/43, Phuhom, B8/32, and B9A. Regionally, PTTEP also participates in Yanada, Yetagun, M 7, M 3, and M 4 in Myanmar, and 9-2, 16-1 B, and 48/95 and 52/97 in Vietnam, as well as exploring concessions in Cambodia and Malaysia.
Middle East
Bahrain. Six offshore blocks will be offered for exploration by Bahrain late this year or early in 2007, according to reports from the area. The National Oil & Gas Authority is analyzing seismic and existing exploration well data from the blocks in anticipation of preparing bid documents. The government already had received unsolicited offers and proposals to begin exploration offshore, but nothing tangible resulted. Bahrain and Saudi Arabia share the Abu Sa’fah offshore field which produces 300,000 b/d of oil which Saudi Arabian Oil Co. sells and the two countries share the proceeds.
Caspian Area
Black Sea. Toreador Resources Corp. and its joint-venture with TPAO and Stratic Energy Corp. in the South Akcakoca subbasin offshore Turkey in the Black Sea recently completed drilling the Kuzey Akkaya-1 well and the jackup Prometeu has moved to begin installing the Akkaya production tripod. After installation of the tripod, the jackup is scheduled to drill a development well on the Dogu Ayazli structure and then install two other production tripods on the Dogu Ayazli and Ayazli structures.
Current development plans for the SASB project call for eight wells to go on production in the first phase of development. The eight wells include two wells on the Ayazli structure, three wells on the Dogu Ayazli structure, and three wells on the Akkaya structure. Successful wells drilled in the Ayazli and Bayhanli structures will be tied into the production system later. First production is expected in 4Q06 at an initial rate of 60 to 70 MMcf/d of gas.
Upon completion of this work, thePrometheus will move to the TPAO-operated sector of the joint venture to the northeast of the SASB project and drill up to three exploration wells. A high-resolution 2D seismic survey was conducted in late 2005 and early 2006 to delineate the prospects in this acreage. Toreador and Stratic hold the same working interest in the TPAO-operated exploration acreage as they do in the SASB project area, 36.75% and 12.25% respectively. It is anticipated that drilling will start in 4Q06.
TheSouthern Cross semisubmersible rig is expected to start drilling the SASB by mid-October, depending on when its current operator releases it. The rig will drill up to three wells on the Akcakoca trend in the project area, including a well that will twin the Akcakoca gas discovery drilled in 1975. Toreador will be the operator for the three wells. If successful, the wells in the Akcakoca trend will be put on production in the second phase of development which is scheduled for completion during the first half of 2007.
North Sea
Norway. Lundin Petroleum AB has acquired from Total interest in the undeveloped Peik prospect in the UK and Norwegian sectors of the North Sea. Lundin has acquired 50% of NCS block 24/6a, operated by Total, 33.3% of UK block 9/15a, operated by Total, and 85% of UK block 9/10b for $45 million.
The Peik field was discovered by two exploration wells and contains estimated reserves of 20 MMboe. The field will be subject to unitization between the UK and Norway. A plan of development is expected which will call for a subsea installation tied back to a nearby platform.
Celtic Sea. Providence Resources Plc has signed a farm-out agreement with Challenger Minerals Inc. on its Celtic Sea blocks 03/8 and 03/1 off the south coast of Ireland. Under the terms of the agreement, CMI will pay 26.7% of the 2006 seismic program costs in return for a 20% interest in the two blocks. Providence will retain 75% and Midmar Energy Ltd. will hold 5%.
The Licensing Options 03/8 and 03/1 contain the Blackrock, Ardmore, Helvick, Hook Head, and Dunmore (Block 50/6 & 7) discoveries, as well as the Glandore exploration prospect.
Africa
Angola. Daewoo Shipbuilding & Marine Engineering Co. has received an order from Chevron to build a drilling and production platform for offshore Angola, according to reports from Seoul, South Korea. The facility is scheduled for delivery to Cabinda Gulf Oil Co. by the end of May 2009 and will be installed on the Tombua-Landana field. Production is to be 130,000 b/d of oil, and the facility will receive 210 MMcf/d of gas and have a 310,000 b/d water-injection capacity.
Daewoo said that the $1.27-billion platform will be the world’s largest drilling and production facility upon installation.
The compliant tower for the Tombua and Landana fields in bock 14 off Angola will weigh 79,000 metric tons, slightly less than the one for Chevron’s nearby Benguela-Belize project that DSME recently completed. Cabinda Gulf operates block 14 with a 31% stake, while state-run Sonangol holds 20%, Italy’s Eni has a 20%, Total has 20%, and Portugal’s Galp Energia holds 9%.
Gene Kliewer, Houston
