Plans include further development of the G10/48 Wassana oil field and development of G6/48, bothoffshore Thailand, and of the offshore Cambodia block A oil fields.
All are said to represent low-risk development opportunities with significant exploration upside.
At the same time, management will look to rationalize the group’s asset portfolio. This will include farm-downs of its interests in G10/48 and Cambodia block A (KrisEnergy 85% in each case).
Last November the company agreed to transfer a 26.6666% interest in block A Aceh to operator PT Medco E&P Melaka, and has elected to relinquish block 105-110/04 off Vietnam and the Kutai and East Muriah production-sharing contracts offshore Indonesia in order to avoid future associated exploration obligations.
Last year the KrisEnergy-operatedWassana oil field in G10/48 produced on average 7,472 b/d of oil, 25% below expectations. Production peaked at 12,800 b/d during 1Q 2016 but then dipped following mechanical issues at five wells and declining well productivity.
Remedial work such as well perforation and the replacement of pumps has steadied performance this year at around 5,500 b/d, and the company aims to drill up to five infill wells over the course of 2017.
Technical studies are also under way for potential development of a satellite oil accumulation within the Wassana production area, with production processed through the Wassana facilities.
At theNong Yao oil field in G11/48 production averaged 9,486 b/d. Four infill wells were completed in mid-September, and four more are set to be drilled this year.
In Indonesia, the block A Aceh joint venture partners have approved a final investment decision for the gas development, following award of the first and second engineering procurement and construction for the flowlines, trunklines, and pipelines.
Construction has started and negotiations continue on financing for the development.
Indonesia’s Ministry of Environment approved the environmental impact assessment for theLengo gas development in the Bulu PSC offshore East Java.
Six companies qualified for the engineering, procurement, construction and installation tender, although this has been deferred while negotiations continue on the gas sales agreement.
Last August theCGG Amadeus completed an 884-sq km (341-sq mi) 3D seismic survey over the G10/48 contract area, covering two sub-areas in the license. The data has been integrated with the existing geological model to assist identification of drilling locations for additional prospects and leads in the concession.