Pertamina preparing to surrender monopoly, go international
Indonesian state oil company Pertamina has boosted exploration and production (E&P) spending by more than $80 million for 2001, the Organization of Petroleum Exporting Countries' news agency, OPECNA, reported. The move, which will raise investment in E&P to $189 million, will kick off a five-year program that aims to double the country's oil production capability. Late last year, Pertamina said it planned to boost oil production by about 20% from 65,000 b/d. Pertamina has six working areas and several joint ventures and oil reserves of about 1.4-1.5 billion bbl and 13-14 tcf of natural gas, claim company officials.
Pertamina Exploration Director Gatot Wiroyudo explained that in light of government plans to revoke Pertamina's upstream and downstream oil monopoly status, the firm must prepare itself to become a world class oil company. Currently, all exploration and production is done by Pertamina or by foreign companies in partnership with the state firm.
Wiroyudo said Pertamina has asked the government to allow it to operate several promising oil blocks in the Makassar Straits. He added that Pertamina has signed memorandum of understanding with Malaysia's Petronas and Vietnam's PetroVietnam to cooperate in the upstream oil sector.
Discovery made in Pangkah PSC block
An offshore oil discovery was made in the partner-operated Pangkah PSC off Indonesia, in which Gulf Indonesia holds a 12% working interest. The Sidayu-1 well, drilled by Transocean Sedco Forex jackup Trident 17, flowed 1,450 b/d of oil during testing from a vertical wellbore. The well is located seven km northeast of the Ujung Pangkah-1 oil and gas discovery well drilled in late 1998. Drilling of the Ujung Pangkah-2 delineation well, located two km west of Ujung Pangkah-1, is currently underway.
Development begins on North Pailin
In late December of last year, J. Ray McDermott, S.A. was awarded a contract for Unocal Thailand's North Pailin Project. The contract covers fabrication, transportation, installation, hook-up, and pre-commissioning of the North Pailin Development Project in the Gulf of Thailand.
This project is the second phase of the Pailin Field development program, Unocal Thailand's largest single project in terms of infrastructure. J. Ray McDermott's portion of the work includes a tripod-supported flare bridge assembly and the North Pailin Central Processing Platform (NPCPP). The NPCPP sub-structure will be a conventional eight-leg jacket. The topsides facility will be constructed in modules, comprising a modular support frame (2,460 tons) and three modules (4,620 tons), along with a 400-ft flare bridge (330 tons).
J. Ray McDermott's Batam Island facility will fabricate the structures, which should be finished early next year. When completed the North Pailin Platform will process well fluids received from satellite wellhead platforms by subsea pipelines and will export a daily average of 200 MMcf of natural gas and 11,000 bbl of condensate.
Drilling underway offshore West India
In mid-December, Cairn announced the completion of an extensive test program on appraisal well CB-A-2 on Block CB-OS/2, offshore Gujarat, West India, using the jackup Noble Chuck Syring. Cairn announced the CB-A-2, a 4.5 km step-out appraisal of the Lakshmi gas discovery, earlier last year.
The well encountered multiple hydrocarbon pay zones between 750 meters and 1,250 meters. Four zones were tested with a cumulative flow rate of 103.3 MMcf/d. The gas contained no carbon dioxide or hydrogen sulfide. A thin interval of oil-bearing reservoir was also encountered but not tested, confirming an oil leg across the structure.
Following initial evaluation of the appraisal well, Cairn estimates that the Lakshmi Field contains P50 proved plus probable gas reserves in the region of 300-400 bcf. The appraisal well confirmed a complex reservoir distribution across the structure. As part of the development program, a 3D seismic survey is planned for this year to further evaluate and delineate the field. Cairn expects the commencement of gas deliveries in the first quarter of 2002.
Conoco extends Rang Dong
Late last year, Conoco and its partners completed a successful step-out well that significantly extends the producing area of the Rang Dong field in Block 15-2 off Vietnam. The block, which covers 1,615 sq km, is about 180 km southeast of Ho Chi Minh City in the Cuu Long Basin in 50 meters of water. The well initially tested at a rate of 8,500 b/d from one zone. This successful well indicates that there are more excellent prospects in the area.
Conoco recently increased its interest from 30% to 36% in Block 15-2 following approvals from its partners, Japanese Vietnam Petroleum Company (46.5%), and PetroVietnam (17.5%). Conoco holds interests in five offshore blocks totaling more than 23,285 sq km.
India licensing round pending
India has offered 25 blocks in 13 basins in the second licensing round under its new exploration licensing policy. Eight of the blocks are in water depths greater than 400 meters off the west coast, and eight are in shallow water. The remaining nine blocks are onshore. Bid proposals will be accepted until March 31. Data rooms will open shortly in Delhi, London, and Houston.
Boosting production on Bunga Raya
Lundin Oil subsidiary Lundin Malaysia Limited, together with Petronas Carigali and PetroVietnam Exploration & Production, began a new exploration well, East Bunga Raya 1, on an extension of the Bunga Raya Field on Block PM3 commercial arrangement offshore Malaysia/Vietnam. The well will be drilled to about 8,000 ft total depth and will target both deeper oil bearing reservoirs and shallow gas filled sand channels. The well could substantially increase the oil and gas reserves in the Bunga Raya Field. Current proven and probable reserves on Block PM3 are in excess of 144 million bbl of oil and 1.5 tcf of gas.
An extensive production enhancement program underway on the producing Bunga Kekwa Field has resulted in the re-perforation of two producing wells. Sustainable production levels from the block should rise to over 17,000 b/d by the end of the first quarter. Present levels are about 15,000 b/d.
Lundin Oil AB has a 41.44% working interest in Block PM3 (held through its subsidiaries, Lundin Malaysia Limited with 26.44% and Lundin Malaysia AB with 15.00%) Lundin Malaysia Limited is operator. Remaining working interest is held by Petronas Carigali Sdn Bhd (46.06%) and PetroVietnam Exploration and Production (12.5%).
