Peter Tang
Singapore
Myanmar 9th offering
Arakan coastal blocks
On 10 August, the Ministry of Energy announced the opening of the Ninth Bidding Round. A total of 20 blocks, including five offshore blocks are being offered with a bid deadline of 20 October. Standard PSC terms will apply. The offshore blocks are all located on the Arakan coast and have not been held under license since the 1970s, when Total, Cities Service, and Arakan Oil Company held tracts. No blocks in the Martaban Basin have been offered. Details of the offer blocks are:
Block A-3, 6,782 sq km, with available data from two wells and 1,800 line km seismic.
Block A-4, 7,482 sq km, with available data from one well and 900 line km of seismic.
Block A-5, 10,536 sq km, with available data from one well and 1,900 line km seismic.
Block A-6, 9,832 sq km, with available data from 1,000 line km seismic.
Block A-7, 8,228 sq km, with available data from one well and 1,500 line km seismic.
Apache Zhao Dong success in China's Bohai Bay
Apache's latest well in the Zhao Dong PSCA in the western Bohai Beach area has been a success. ZDC#3 tested approximately 4,050 b/d oil with associated gas from the section between 1,132-1,420 meters in the Mio-Pliocene Minghuazhen Formation. This was comprised of 2,400 b/d oil from two deeper sections and 1,650 b/d oil on pump from a shallower interval. A second test in the Oligocene Shahejie Formation flowed approximately 1,350 b/d oil before water replaced the oil. Gravity of the oil in both formations ranged from 19-24 API. According to a statement from Apache, the ZDC accumulation still requires further evaluation of its commerciality prior to any potential development.
In the Bohai Gulf, COOBC has plugged and abandoned wildcat QHD 32-6 #1 at a TD of 1,976 meters after it had flowed a maximum of 314 b/d of 17.5 API oil, from the section between 1,136-1,903 meters. Meanwhile, an appraisal of the discovery, QHD 32-6 #2, has so far tested 656 b/d of 27 API oil in an ongoing testing program.
In the Yinggehai Basin, CONHW plugged and abandoned wildcat LT 19-1 #1 on 21 August after reaching a TD of 2,466 meters. No significant hydrocarbons were encountered and the well was not tested. Interestingly, the well is located immediately to the north of Chevron's recently signed GSA 50/20 and may have important implications for potential plays in that block.
Arco's two important HP/HT wells in the offshore Hainan area are still active. In PSCA 63/28, YC 35-1 #2 is now logging at 5,281 meters after entering the gas sand at approximately 4,600 meters. Meanwhile, in PSCA 63/20, YC 26-1 #1 has now been drilled to a depth of 5,134 meters and a seven-inch liner is being run to 5,133 meters. Also, a 5,971 line-km 3D seismic survey has recently been completed over the tract using the Orient Pearl vessel.
Papua New Guinea
Block PPL 179 awarded
Oil Search (operator) and equal interest partner Ampolex, have been awarded the predominantly offshore PPL 179 in the western Gulf of Papua. The 16 August award for the 9,605 sq km tract is for a six-year, three-phase exploration period. In the first phase, reprocessing of vintage seismic and acquisition of aeromagnetic data are required with 1000 km of new seismic and a wildcat stipulated in the second phase. If the final phase is entered, an additional 500 km of new seismic are required as well as a second wildcat.
Ubon #2 spudded in Thai Malay Basin
In Block B12/27 in the Malay Basin, Unocal spudded important delineation well Ubon #2 on 25 July using the Sedco 602 semisubmersible. The well is the first appraisal of 1991's Ubon #1 oil discovery which tested at the rate of 2,030 b/d of 28 API oil with minor associated gas, although flow rates declined rapidly to approximately 1,000 b/d oil. The new well is located about four km southwest of Ubon #1, where the Malay and Pattani Basins merge north of the Narithiwat High. Ubon #2 has a PTD of f3,623 meters to test Miocene sandstones.
Vietnam P&As by BP and Oxy
Both Occidental's 04-3 BC #1X (ST) in Block 04-3 and BP's 117-STB #1X in Block 117 have been plugged and abandoned. 04-3-BC #1X was drilled to a TD of 4,176 meters in granitic basement after sidetracking for mechanical reasons from around 2,000 meters. Two or three DSTs were conducted (including one in basement), but it is believed that no significant flow was recorded as the well was abandoned on 11 July. Meanwhile, BP's 117-STB #1X was abandoned without testing on 16 August at an undisclosed TD.
The well was drilled to test a large Miocene reef structure similar to those drilled by PB's 119-CH #1X and 118-CVX #1X wells, and IPC's 115-A #1X.
Brunei first for Fletcher Challenge
In Block A in the Baram Delta Basin, Fletcher Challenge Petroleum Borneo has spudded its first well in Brunei. BCS #1, an appraisal of Elf's 1989 Perdana #1 oil discovery, was spudded on 11 August using Sedco's Sedco 601 semisubmersible in 90 meters of water. It is designed as a deviated well to test Lower Pliocene sandstones at a PTD of 3255 meters.
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