Peter Tang
Singapore
Timor Gap goes to court
The Portuguese government is taking Australia to the International Court of Justice in the Netherlands claiming that it had no right to sign a treaty with Indonesia in December 1989 to jointly explore their overlapping claims in the Timor Gap.
Portugal claims that Australia is in the wrong because the United Nations still recognizes Portugal as the administrative authority in East Timor. Indonesia invaded and occupied East Timor in 1976, and its action is not recognized by the UN.
Australia and Indonesia reached an agreement in 1989 to explore the 61,000 sq km area. They divided it into three parts, Zones A, B, and C, and the area became known as the Zone of Cooperation. Since the treaty was signed, 16 wells have been drilled, including Broken Hill Propriety's Elang-1 discovery, which flowed at 5,800 b/d oil. In addition, last September, Woodside announced a significant oil discovery at Laminaria-1, immediately west of the ZOC.
Myanmar awards two more blocks
The Myanmar Oil and Gas Enterprise has concluded negotiations with ARCO and Texaco and two blocks have been awarded under PSC terms.
ARCO's first entry into Myanmar sees it pick up Block M-9 in the northern Gulf of Martaban. The 11,800 sq km tract lies immediately south of Total's Yadana gasfield. The Myanmar Oil Company drilled two wells in M-9 in the 1970s, but the results were inconclusive following drilling problems.
Texaco acquired its fourth block offshore Myanmar following signature of the 13,880 sq km Block M-10, also in the northern Gulf of Martaban. The tract was explored in the 1970s by Esso, which drilled two dry wells. Block M-10 lies immediately north of Texaco's M-12 and M-13 blocks, where its Yetagun gasfield is located. Texaco began a three-well exploration program in the area in January, when it spudded Dawei-1 in Block M-14, using the drillship Deepsea Ice. The program is designed to test shallow targets.
Philippine seismic survey underway
On 24 January, PGS, using the Odin vessel, began a series of 2D surveys in the Philippines. Data are being shot on behalf of Alcorn (SC 14), Kirkland (GSEC 60 and GSEC 63), Pecten (GSEC 76), Shell (SC 38), and Trans-Asia (GSEC 64) - about 3,000 km in total is expected to be acquired before the boat moves on to China.
Vietnam activity at all time high
Activity in Vietnam reached an all-time high in January with seven wildcats operating all in the South Con Son Basin. On 31 December, Japan's AEDC spudded OS-3-TT-IRX in Block 05-3. This is a re-drill of its 05-3-TT-1X, abandoned due to serious over pressure in February 1994.
BP's 05-2-KCT-1X in Block 05-2 is still ongoing, although mechanical problems have resulted in at least one sidetrack. Occidental's 04-3-UT-1X in Block 04-3 was being completed in January. The well reached a total depth of 3,642 meters in December, but the rig had to return to Singapore for repairs. the anchor chains were replaced, and the rig returned to the block in early January.
PEDCO is involved in the drilling of two wells in Block 11-1. Both 11-1-RD-1X and 11-1-RVD-1X have encountered good hydrocarbon shows and are expected to be tested.
Meanwhile, MJC's 05-1B-TL-1X in Block 05-1B was being sidetracked after reaching its proposed total depth of 4,500 meters. This well is testing the Blue Dragon structure, located within Chinese-claimed waters. Hydrocarbon shows have been reported in several intervals since spud on 30 August.
Finally, Total is reported as testing wildcat 11-2-CC-1X in Block 11-2. The well is rumored to have intersected around 200 meters of hydrocarbon pay in Miocene sandstones before it reached a total depth of 4,275 meters. If this well proves successful, it will represent the first major discovery on the western side of the South Con Son Basin.
In the coming months, activity will gain even further momentum with wells planned by British Gas (Block 04-1), JVPC (Block 15-2), Lasmo (Block 04-2), and Petronas (Blocks 01 and 02). A number of seismic surveys are also confirmed for the second quarter of the year.
Malaysian deepwater blocks awarded
On 27 January, Sabah Shell signed a PSC agreement with Petronas for deepwater Block SB-G off Sabah. The block lies adjacent to British Gas's SB-2 PSC and on trend with Shell's April 1994 important Kebabangar-1 oil, gas, and condensate discovery in SB-1. Adjacent deepwater Block SB-4 is likely to be awarded to Shell shortly.
Shell joins Mobil as a deepwater acreage holder in Malaysia. Mobil's licenses are SK-A, SK-B, SK-C, and SK-D, all off Sarawak. On 26 December, Mobil spudded its first commitment well, Mulu-1, in 1,185 meters of water in SK-A, using the semisubmersible Jack Bates. Following this, Mobil will spud Bako-1 in SK-C. The results of these wells will be watched with interest.
Thailand's proving significant
In January, Denmark's Maersk Oil successfully completed a three-well program on the Tantawan trend in B8/32 in the Gulf of Thailand, using the semisubmersible Sedco 601. Tantawan-6, 7, and 8 were all classified as wildcats and tested separate fault blocks in the complex structure. Reserves have been increased as a result of the program, and development plans are being considered.
B8/32 was awarded to Maersk in August 1991, as a result of the 13th Thai Licensing Round. It was considered one of the best blocks on offer, as it covered a large portion of the Pattani Trough.
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