ASIA/PACIFIC

Idemitsu's former Block 3 off Cambodia. [9,699 bytes] Block 15-1, Vietnam's first JV Agreement area. [9,943 bytes]

Dec 1st, 1998

Peter Tang
Singapore

Bangladesh E & P alliance concluded

Cairn and Shell have concluded their full 50/50 strategic E&P alliance in Bangladesh. Cairn will assign one-third of its interests to Shell: offshore assets comprising an 18.75% stake in the Sangu gas field, 25% in the remainder of Block 16, and 25% in the offshore portion of Block 15. In return, Shell will pay about US$94 million for the 18.75% Sangu interest inclusive of 1997 historic costs, pay historic costs of about US$21 million on the remainder of the interests, provide a US$100 million gross exploration program, and provide a US$110 million development program, 50% of which is allocated to the onshore Semutang Field and 50% to any future discoveries.

Cambodia: Idemitsu releases Block 3

Following a series of extensions to the exploration period of Khmer Trough/Khmer Shelf Block 3, Idemitsu has allowed the production sharing contract off Cambodia to expire. Block 3 was originally awarded to Japex in late 1991 following the first licensing round, but was immediately transferred to Campex.

In February 1994, the first well drilled on the block, Apsara-1, flowed 300-400 b/d of oil with a small amount of gas, but Devada-1, the next well, was found to be dry. Apsara-1 was Cambodia's first hydrocarbon discovery. Poulo Wai-1, the last well drilled on the block, was plugged and abandoned with oil and gas shows in 1996. Idemitsu farmed-in to Block 3 mid-1997 and also assumed operatorship.

CNOOC offers relinquished acreage

China National Offshore Oil Corp. recently held a bid round for blocks in the Pearl River Mouth Basin offshore China. The acreage on offer was formerly held by Triton and relinquished at the beginning of August. Three blocks are on offer: Blocks 16/03 and 16/06 lie in the area of Triton's former PSC 16/03, and cover tracts of 3,500 sq km and 3,010 sq km respectively; Block 16/22, covering an area of 2,200 sq km, lies within the boundaries of Triton's former PSC 16/22, but with reduced area. PSCs will be based on CNOOC's standard Fourth Round Model Contract.

Arco and Texaco to develop QHD 32-6

Arco and Texaco signed a contract for the development of the Qinhuangdao (QHD) 32-6 Field in the Bohai Gulf with CNOOC. CNOOC holds 51% interest and will operate; Arco and Texaco will each hold 24.5% interest. The group anticipates completing a development plan by year-end 1998 with production start-up scheduled for mid-2001. Production is scheduled to reach a sustainable rate of 60,000 b/d of oil in 2002. In-place oil reserves of the field are estimated to exceed one billion bbl.

High carbon dioxide complicates discovery

CONHW is understood to have officially reported recent exploration well WC 14-3-1 (Zhu III Depression, Pearl River Mouth Basin, China) as an oil and gas discovery, but with a high carbon dioxide content. CONHW is now known to be planning two further Zhu III Depression wells, QH 18-4-1 and WC 15-1-1. A third well, QH 18-3-1, is ongoing.

New West Natuna discovery confirmed

Gulf Indonesia Resources' Jangkar-2X step-out, located in the Kakap PSC in the West Natuna Sea, Indonesia, has been designated an oil well. The first test, run over the L3 Sandstone over the interval between 2,449 and 2,505 meters flowed at a stabilized rate of 5,700 b/d of oil on a 48/64-in. choke. A second test that commingled the earlier test interval with the L1 Sandstone over the interval 2,273-2,306 meters flowed at a combined stabilized rate of 7,855 b/d of 45 degree API oil. The well was spudded as the first appraisal of Jangkar-1X ST, which intersected 165 meters net hydrocarbon pay in March 1998. Jangkar-2X was drilled to 2,961 meters MD (1,994 meters TVD) after intersecting 40 meters of "producible hydrocarbons" in the objective L1, L3, and L49 sandstones. Gulf Indonesia plans to complete the L3 Sandstone for tieback to the KH platform. First oil from the field is expected this month.

Two East Kalimantan gas discoveries

In Unocal's Makassar Strait Block A PSC in the offshore Kutei Basin of East Kalimantan (Indonesia), wildcat Seno West-1 was plugged and abandoned as a gas well after intersecting some 63 meters of net oil pay, 24 meters of net gas pay, and a further 7.5 meters of questionable oil pay. It was spudded Aug. 26 as a 3,402-meter test of an Upper Miocene turbidite sandstone. It was drilled to 3,561 meters MD (3,203 meters TVD).

Total's Stupa-4 wildcat, located in the Offshore Mahakam PSC in the Kutei Basin of East Kalimantan, was suspended as a gas well after intersecting 16 meters of net gas pay and one meter of net oil pay. The well, located 1.7 km northeast of the July 1996 Stupa-1 ST gas/condensate discovery, was a 3,626 meter test of the Upper and Middle Miocene Sepinggan Formation sandstones. It reached TD at 3,477 meters.

Bunga Kekwa A5 development onstream

It has been reported that Lundin has successfully completed its Bunga Kekwa A5 development well in the North Malay Basin PM-3 Commercial Area (Malaysia/Vietnam). The well is now producing in excess of 9,000 b/d from four oil-bearing intervals, increasing the total Bunga Kekwa Field production to over 18,000 b/d of oil. The well targeted the crest of the structure and confirmed the up-dip continuity of the producing reservoirs intersected in the A1 and A4 development wells. Development continues with the Bunga Kekwa A6 well, spudded immediately after A5 using the Trident XV jackup over the Bunga Kekwa A platform.

Vietnam awards first JV to Conoco group

A Conoco-led consortium, the Cuu Long Joint Operating Co., has been awarded Mekong Basin Block 15-1 off Vietnam. The acreage was awarded under a joint venture agreement, the first of its type in Vietnam. The initial consortium consisted of PetroVietnam, 50%; with Conoco, 18%; Geopetrol, 14%; Pedco, 9%; and SK Corp. (formerly Yukon), 9%. However, following signing, Geopetrol immediately farmed-out 10.5% of its stake with 5.25% going to Conoco and 2.625% each to Pedco and Yukong. The consortium has allocated US$100 million for a five-year exploration program commencing with a 3D survey for the second quarter of 1999 and at least five wells to test basement plays.

Copyright 1998 Oil & Gas Journal. All Rights Reserved.

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