Chim Sáo awaits first oil off Vietnam

Premier Oil has received a Ready for First Oil Certificate from the FPSO contractor for the Chim Sáo oil field in the Nam Con Son basin offshore southern Vietnam.

Oct 5th, 2011

Offshore staff

LONDON – Premier Oil has received a Ready for First Oil Certificate from the FPSO contractor for the Chim Sáo oil field in the Nam Con Son basin offshore southern Vietnam.

Following final performance tests today, production is due to start from the field in block 12W on Friday morning.

The production scheme comprises an FPSO, a wellhead platform and a subsea pipeline system to transport hydrocarbons, export gas, and provide water injection and gas lift.

Crude oil from Chim Sáo will be transported to the FPSO Lewak Emas, which has an oil processing capacity of 50,000 b/d, before being exported via tankers.

Produced gas will be sent to shore for power generation to meet Vietnam’s domestic demand. Output from Chim Sáo should plateau at around 25,000 b/d of oil and 25 MMcf/d of gas.

In addition, an oil discovery in the fault terrace north west of the Chim Sáo field has been successfully appraised by the CS-N1P development well.

The well intersected an estimated 89 m (292 ft) of net oil-bearing sands within a stacked sequence of Upper Dua sandstones. This compares with an estimated 15 m (49 ft) of net oil- bearing sandstones encountered in the CS-N2P well.

The Chim Sáo development drilling program has been extended with the inclusion of a production well to step up recovery from a shallow reservoir within the Middle Dua sandstone section.

Premier and its partners discovered Chim Sáo in November 2006, with the government of Vietnam approving development just over three years later.

Elsewhere off Vietnam, Premier is drilling the 104-QMV-1X (Qua Mit Vang) exploration well, which is currently at 3,665 m (12,024 ft) subsurface. The primary, pre-Tertiary target is at 3,730 m (12,237 ft) and should be penetrated next week following setting of 9 5/8-in. casing.

In the Indonesian sector of the Natuna Sea, Premier’s Gajah Baru facilities are mechanically complete. However, gas exports are being held up due to unexpected delays in approvals by Indonesia’s government.

Gajah Baru is contracted to ship approximately 100 BBTU/d to Singapore after ramp-up of production. An additional 40 BBTU/d is dedicated to the domestic market on Batam Island.

Premier says it is working with its partners and the Indonesian authorities to finalize these approvals.

Also in Natuna Sea block A, the Anoa Deep well should reach its target in December and the Biawak Besar well will spud immediately thereafter.

10/05/2011

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