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Indonesia		    Chevron Indonesia Discovered Gas Reserve Off Kalimantan  

    Niko Awarded PSC  

    Eni Grows Indonesian Presence  

    BP Wins Offshore PSC  

    Statoil Gets Indonesian Block  

    Salamander Announces Bengara Success  

 



Chevron Indonesia Discovered Gas Reserve Off Kalimantan

Chevron Indonesia has discovered a pocket of natural gas off the eastern coast of Kalimantan that could boost the country’s production by more than 10 percent.

The company located a gas reserve of 2.3 trillion cubic feet in the Makassar Strait, and total cost to develop the block is estimated at up to $7 billion, the nation’s upstream oil and gas regulator BPMigas.

The company is expected to produce 1,000 million standard cubic feet per day (mmscfd) of gas from the block, BPMigas said. Output of 1,000 mmscfd of gas is equal to about 172,000 barrels of oil equivalent per day (boepd). Indonesia’s natural gas production last year was 1.5 million boepd, according to BPMigas.

“We have agreed on the plan of development on those blocks, so we already know the reserve for the first phase of the project,” said Gde Pradnyana, a spokesman for BPMigas, said on Monday. The total cost to develop the project is estimated at $4 billion to $7 billion.

Chevron owns four gas blocks in the Makassar Strait, located between Kalimantan and Sulawesi islands, and continues to explore within those blocks for more gas reserves. It began exploration activities on the blocks in 2008.

Of the four blocks, two of them — the Ganal and Rapak blocks — are jointly owned with ENI, an Italian oil and gas company, in which it owns a 20 percent stake.

Chevron is Indonesia’s largest oil producer, with total daily production averaging 477,000 barrels of liquids and total average daily production of natural gas at 611 mmscfd in 2010, according to the company’s Web site.

Chevron operates in partnership with Indonesia’s government under so-called production-sharing contracts.

Indonesia has been struggling to boost oil production after the country’s crude oil output fell below 1 million bpd in 2007. Oil companies operating in Indonesia produced about 904,000 bpd last year.

“That’s why we want to change the paradigm from oil to gas,” Gde said.

Source: The Jakarta Globe - 13th February 2012         < Back to News Index >        < Back to Countries Index >



Niko Awarded PSC

At the end of November it was announced that Niko had been awarded two new PSCs Production Sharing Contracts in Indonesia.

The North Ganal PSC (2,432 sq km), located in the highly prolific deep water petroleum province of East Kalimantan, was awarded to a consortium of five companies consisting of subsidiaries from Niko, Eni, Statoil, GDF SUEZ and Black Platinum Energy. Eni will be the Operator of the PSC. This PSC lies on trend with the nearby Jangkrik discovery of Eni and GDF Suez which is awaiting Government approval for a planned fast track development. The PSC will also interrogate the same geologic plays as the adjacent deep water Chevron developments. The North Ganal PSC is adjacent to the existing Niko’s operated PSCs in Makassar Strait (North Makassar Strait PSC and South East Ganal I PSC), giving Niko a strong position in this active development area.

The Obi PSC (8,057 sq km) lies in Eastern Indonesia, south of Halmahera Island. The PSC was awarded to a consortium consisting of subsidiaries of Niko, Statoil and Manley N.V. Niko will be Operator of the Obi PSC. This PSC is near the Niko operated Kofiau and Halmahera-Kofiau PSCs. These three blocks capture the direct extension of the geologic trends established in the Salawati production area of Papua which has to date produced more than 500 million barrels of oil equivalent.

With these two PSCs, Niko is now a participant in 18 Indonesian PSCs (Operator of 13) covering over 90,000 square kilometers or 22 million acres and the Company maintains its position as the largest holder of deep water exploration acreage in Indonesia.

Source: PetroMin November/December 2011         < Back to News Index >        < Back to Countries Index >


Eni Grows Indonesian Presence

Eni has been awarded two new Production Sharing Contracts (PSCs) in Indonesia.

In the West Papua Province (East Indonesia), Eni has been awarded 100% interest in the Arguni I PSC 5,386 sq. km), located onshore and offshore in the Bintuni Basin. The block is 10 km east of the Tangguh LNG processing facility. The work program foresees the acquisition of 2D and 3D seismic and the drilling of two wells during the first 3 years of exploration.

In the offshore East Kalimantan Province, Kutei Basin, Eni, as part of a consortium including Niko Resources (North Ganal) Ltd., North Ganal Energy Ltd (a whollyowned subsidiary of Black Platinum Energy Ltd), Statoil Indonesia North Ganal AS and GDF SUEZ, has been awarded the North Ganal PSC (2,432 sq. km). Eni will be the Operator. The North Ganal Block is adjacent to the successful Jangkrik and Jangkrik North East discoveries. The North Ganal deal involves the drilling of one well and the acquisition of 200 km of 2D seismic during the first 3 years of exploration. The Bontang LNG processing facility is located about 80 km west of the North Ganal acreage.

Eni as operator of the Muara Bakau PSC has already presented the Plan of Development for Jangkrik field to the Indonesian Authorities, which is expected to go on stream in 2015 thanks to a fast track development concept. GDF SUEZ is partner in the JV.

Eni has been operating in Indonesia since 2001. The company holds working interests in fourteen permits and operates eight of them. The offshore activities are located in the Tarakan and Kutei Basins, offshore Kalimantan, north of Sumatra and West Timor. In the Kutei Basin, Eni is also participating in the development of the significant gas reserves located in the Ganal and Rapak blocks.

Source: PetroMin November/December 2011         < Back to News Index >        < Back to Countries Index >


BP Wins Offshore PSC

BP has been awarded two oil and gas production sharing contracts (PSCs) by the Government of Indonesia. The company has been awarded 100 percent interests in the offshore West Aru I and II PSCs in the Arafura Sea, Indonesia.

The West Aru I and II PSCs are located approximately 500 kilometers southwest of the BP-operated North Arafura PSC and 200 km west of the Aru island group, in the Maluku province of Indonesia. The West Aru I PSC covers an area of approximately 8,100 square kilometers and the West Aru II PSC covers an area of approximately 8,300 square kilometers. The two blocks have water depths ranging between 200 meters and 2,500 meters. BP expects to commence seismic operations in these blocks in the near future.

Including the award of these blocks, BP has gained access to 69 new license blocks in 11 countries around the world since October 2010, including the Kalimantan coalbed methane and North Arafura blocks in Indonesia. The company plans to double its spend on exploration worldwide over the next few years.

Source: PetroMin November/December 2011         < Back to News Index >        < Back to Countries Index >


Statoil Gets Indonesian Block

Statoil has been awarded the operatorship and a substantial working interest in a large offshore exploration license in eastern Indonesia.

The Halmahera II block is located in a frontier basin with no wells drilled nearby.

Statoil will operate the license with an 80% working interest. Niko Resources will hold the remaining 20%. The license covers an area of more than 8000 square kilometers. The license is subject to final governmental approval.

The Halmahera II license marks the sixth newly accessed license in Indonesia during 2011 for Statoil and brings the total number of licenses with Statoil interest in Indonesia to eight. The newly awarded license is located adjacent to the Obi and Halmahera-Kofiau licenses, accessed earlier this year.

Source: PetroMin November/December 2011         < Back to News Index >        < Back to Countries Index >


Salamander Announces Bengara Success

In mid-November Salamander announced the results of the recent appraisal drilling and testing program on the South Sebuku-2 (“SS-2”) well, Bengara1 PSC, East Kalimantan. The Group has a 42% non-operated interest in the Bengara-1 PSC.

The SS-2 well was drilled to a total depth of 1,386 MDSS and encountered over 15 meters of net gas-bearing sandstones in the Tabul formation. Drill stem tests (“DSTs”) were conducted across three of the gas bearing zones and flowed at an aggregate rate of 10.9 MMscfd.

These results, together with the DST data from the South Sebuku1 discovery well demonstrate the commerciality of the South Sebuku accumulation. The South Sebuku-2 well has been suspended as a potential future producer.

The operator prepared a Plan of Development prior to drilling of the SS-2 well which is being refined to incorporate the results of this latest well before submission to the Indonesian regulator for approval.

South Sebuku is located 15 kilometers north of the South Sembakung development on the Simenggaris PSC. Development of this field is on-going and it is expected to be ready to deliver gas from 2H 2012.

Source: PetroMin November/December 2011         < Back to News Index >        < Back to Countries Index >






Malaysia
    PETRONAS Awards Knowledge Reservoir Project for Unconventional Resources Assessment  

    PETRONAS Carigali Finds Oil off Sabah  

    PETRONAS Signs Agreement with Shell for Two New EOR PSCs  

    Lundin Spuds Appraisal Well Offshore Malaysia  


PETRONAS Awards Knowledge Reservoir Project for Unconventional Resources Assessment

In mid-November Knowledge Reservoir, a leading global energy consulting company, announced that it has been awarded a major project by Petroliam Nasional Berhad (PETRONAS) for the Development of Workflows for Assessment of Unconventional Resources. This project will be executed in conjunction with Cekap Technical Services.

The project results from interest at PETRONAS in the development and deployment of Unconventional Resource Workflows and their capture in a Work Flow Process Tool (WFPT) designed to facilitate the in-house resource assessment of unconventional plays and the associated underlying hydrocarbon assets. The project will be global in scope and covers several unconventional resource types, namely coalbed methane (CBM) and shale gas / oil.

The project objectives are to:
  • Develop a road map for PETRONAS to be able to classify, quantify and report unconventional resources as per industry standards and practices
  • Capture the developed roadmap in the form of a hierarchy of unconventional workflows.
  • Deploy the workflows as a dedicated web-based WFPT designed to launch under the PETRONAS portal
  • Conduct a detailed assessment on a resource of interest selected by PETRONAS using the WFPT roadmap

    Given the requirement to deliver a reporting function for unconventional assets, Knowledge Reservoir will use the Society of Petroleum Engineers (SPE) and World Petroleum Congress (WPC) standard definitions as documented in the Petroleum Resources Management System PRMS) currently in effect.

    Source: PetroMin November/December 2011             < Back to News Index >        < Back to Countries Index >


    PETRONAS Carigali Finds Oil off Sabah

    PETRONAS’ exploration and production arm PETRONAS Carigali Sdn Bhd has made a significant oil discovery offshore Sabah. The discovery was made via the Wakid-1 well within Block 2G-2J, about 100km northwest of Kota Kinabalu.

    The well was spudded on 30 May 2011 and was completed on 4 July 2011. It reached a total vertical depth of 3,330m and confirmed the presence of significant oil, and some gasbearing, reservoirs.

    Three production tests were conducted in three different reservoirs which flowed oil at a combined maximum rate of 8,200 barrels per day. Current preliminary estimation of the hydrocarbon-in-place from this discovery is 227 million barrels of oil equivalent (mmboe), with expected upside potential. PETRONAS Carigali plans to further appraise the discovery in the near future.

    Wakid-1 is the second well drilled in Block 2G-2J since the award of its Production Sharing Contract (PSC) in October 2010. The block’s first well, Tambuku-1, was drilled early this year, but yielded only minor gas discovery.

    PETRONAS Carigali is the sole equity holder of the PSC for the block.

    Source: PetroMin November/December 2011             < Back to News Index >        < Back to Countries Index >


    PETRONAS Signs Agreement with Shell for Two New EOR PSCs

    PETRONAS has signed a Heads of Agreement (HOA) with Shell for two 30-year production sharing contracts (PSCs) for enhanced oil recovery (EOR) projects offshore Sarawak and Sabah in East Malaysia.

    Under the HOA, Shell — via subsidiaries Sarawak Shell Bhd (SSB), Sabah Shell Petroleum Company Ltd (SSPC), and Shell Sabah Selatan Sdn Bhd (SSS) — and partner PETRONAS Carigali will further develop nine oil fields in the Baram Delta offshore Sarawak and four oil fields in the North Sabah development area offshore Sabah using enhanced oil recovery (EOR) or other appropriate related technologies.

    Among the key terms in the HOA is the commitment by the partners to spend US$12 billion to extend the life and increase the recovery factor of the fields in the two projects, respectively termed the “Baram Delta EOR Development” and the “North Sabah EOR Development”.

    The Baram Delta EOR Development comprises the Bokor, Bakau, Baram, Baronia, Betty, Fairley Baram, Siwa, Tukau and West Lutong oil fields, while the North Sabah EOR Development contains St. Joseph, South Furious, SF30 and Barton fields. On a combined basis, these EOR development opportunities could be the biggest in the world in an offshore environment.

    The HOA, signed yesterday by President and Chief Executive Officer of PETRONAS Dato’ Shamsul Azhar Abbas and Chief Executive Officer of Royal Dutch Shell Mr. Peter Voser, sets out the basis on which the parties intend to conclude the full terms of the 2011 Baram Delta EOR PSC PETRONAS Carigali 60%, operator; SSB 40%) and the 2011 North Sabah EOR PSC (PETRONAS Carigali 50%; SSPC 25%; and SSS 25%, operator). The partners will also undertake joint R&D in the area of EOR technology under a separate agreement to be signed with PETRONAS.

    The agreement is expected to see several key benefits of national importance: building local capabilities in a niche technology area; increasing the average recovery factor in the Baram Delta and North Sabah fields from around 36% to about 50%; arresting the decline of Malaysia’s oil production by improving production in the fields and extending the field life to beyond 2040.

    If realised, around 765 million barrels of oil reserves are expected to be recovered through the improvement to the recovery efficiency of the fields, translating into additional production of 90,000 to 100,000 barrels of oil per day.

    An estimated 220 personnel, consisting of PETRONAS and Shell’ employees, are currently attached to PETRONAS’ Exploration and Production Technology Centre (EPTC) to work on EOR initiatives in addition to the project execution team for each of the two EOR projects.

    The improvement in the recovery efficiency of the oil fields is expected to positively impact Malaysia’s oil reserves and will benefit the country as a whole. In addition, if successful, the technology employed in the North Sabah fields could potentially lead to the world’s first offshore Alkaline Surfactant Polymer (ASP) EOR project using horizontal wells.

    Source: PetroMin November/December 2011             < Back to News Index >        < Back to Countries Index >


    Lundin Spuds Appraisal Well Offshore Malaysia

    Lundin announced that it recently spudded the Bertam-2 appraisal well in the PM307 Production Sharing Contract (PSC) area, offshore Peninsular Malaysia.

    Bertam-2 is planned to be drilled to a total depth of 1,888 meters by the jackup rig Offshore Courageous (350' ILC). The objectives of the well are to appraise and test the Oligocene lower coastal plain sandstones of the PM307 PSC area.

    The Bertam field was discovered by the Bertam-1 well drilled in 1995. Bertam-1 discovered oil in the K10 sandstone reservoir and flowed 34°API oil at a rate of 624 barrels of oil per day on a short-term production test.

    Bertam-2 is located to the northeast of the Bertam-1 discovery well in 76 meters water depth and aims to test the continuity and quality of the K10 oil reservoir and also explore the potential of deeper sands in an independent closure on the northern side of the structure.

    The PM307 PSC is operated by Lundin Malaysia BV with 75 percent equity interest. Partner in PM307 is PETRONAS Carigali Sdn. Bhd. with 25 percent.

    Bertam-2 is the fifth and final well in Lundin Petroleum’s 2011 Malaysia exploration drilling campaign.

    Source: PetroMin November/December 2011             < Back to News Index >        < Back to Countries Index >




    Singapore
        Jurong Shipyard Bags Prosafe Gig  

        ENSCO 8505 Semisub Set for Completion in 1Q 2012   


    Jurong Shipyard Bags Prosafe Gig

    In mid-December it was announced that Prosafe has entered into a turnkey contract for the construction of a semi-submersible accommodation rig at Jurong Shipyard Pte Ltd. in Singapore. The new unit will be the most advanced and efficient harsh environment accommodation rig in the world and will be constructed to comply with Norwegian regulations.

    The rig will be constructed according to the GVA 3000E design and will be equipped with a DP3 (dynamic positioning) system as well as 12 point mooring arrangement. This will allow for operations in harsh environments both in DP and anchored mode, providing maximum cost efficiency and flexibility. The unit will have the capacity to accommodate 450 persons in single man cabins.

    Delivery from the yard is scheduled for the second quarter of 2014 and all-in cost including yard cost, owner-furnished equipment, project management and financing is estimated at USD 350 million. 20 per cent of the yard cost is payable at signing of the contract, while the remaining 80 per cent will be paid at delivery. The investment can be funded over the current balance sheet without impacting the dividend policy. The contract with Jurong also includes options for two more units, valid for approximately 12 and 18 months, respectively.

    The new rig is ordered on the back of a positive market outlook. The majority of production installations in the North Sea are in a mature stage. At the same time, many of the larger fields are expected to continue producing well beyond the initial estimated depletion date. This development is supportive for the long-term demand for assets and services related to maintenance, modifications and redevelopments. Furthermore, the recent large discoveries in Norway, combined with continued high exploration effort, indicate strong demand related to hookup and commissioning activities.

    Source: PetroMin November/December 2011             < Back to News Index >        < Back to Countries Index >


    ENSCO 8505 Semisub Set for Completion in 1Q 2012

    Keppel FELS Limited is on course to deliver ENSCO 8505, the sixth of seven ENSCO 8500 Series ultra-deepwater semisubmersible drilling rigs to Ensco (NYSE: ESV) safely, on time and within budget.

    The rig is expected to be completed in the first quarter of 2012 with zero lost-time incidents in over five million man-hours worked. Upon completion, ENSCO 8505 is contracted in the U.S. Gulf of Mexico with Anadarko, Apache and Noble Energy.

    With Singapore’s Minister of State for Transport and Finance, Mrs Josephine Teo, as the guest-of-honour, the rig was named ENSCO 8505 at Keppel FELS today.

    Designed to address some of the most demanding offshore drilling requirements at water depths up to 8,500 feet, ENSCO 8505 features a two million pound quad derrick, offline pipe handling capability, 35,000 feet drilling capacity and 8,000 tonnes of variable deck load.

    The fifth in the Series, ENSCO 8504, was delivered by Keppel FELS to Ensco in August this year and has commenced drilling for Total in Brunei.

    Ensco currently has four additional rigs under construction at Keppel FELS. This includes ENSCO 8506, the final ultradeepwater semisubmersible in the Series with delivery expected in 2012, and three KFELS Super A Class jackup rigs with deliveries scheduled in 2013 and 2014. The first jackup to be delivered, ENSCO 120, is already contracted for work in the Central North Sea.

    The three jackup rigs under construction, ENSCO 120, ENSCO 121 and ENSCO 122 provide increased drilling efficiencies for multi-well platform programs, ultra-deep gas drilling, and ultra-long reach wells of up to 40,000 feet drilling depth.

    Source: PetroMin November/December 2011             < Back to News Index >        < Back to Countries Index >




    Thailand
        Bua Ban Show Continues  


    Bua Ban Show Continues

    At the end of November Coastal Energy announced the successful results of the Bua Ban North A-11 well.

    The Bua Ban North A-11 was drilled as a delineation well for the Lower Miocene (M100) reservoir and as an appraisal well for the deeper Miocene reservoir (M500). Both reservoirs were encountered at the prognosed depths and contained better quality sands than encountered in the nearby A01 well. The M100 reservoir contained 47 feet of net pay with 29% porosity compared to 32 feet with 25% porosity in the A-01 well and the M500 reservoir contained 9 feet of net pay with 26% porosity compared to 5.5 feet with 25% porosity in the A-01 well.

    Source: PetroMin November/December 2011             < Back to News Index >        < Back to Countries Index >




    Vietnam
        Honeywell Awarded Contract to Supply Integrated System for Vietnam Offshore Oil Platforms  

        Fred. Olsen Enters LOI for FPSO Offshore Vietnam  


    Honeywell Awarded Contract to Supply Integrated System for Vietnam Offshore Oil Platforms

    In mid-November it was announced that Honeywell had been named main electrical and instrumentation building contractor by the Hoang Long Joint Operating Company (HLJOC) for its H-04 wellhead platform in the Te Giac Trang (TGT) Field.

    The announcement follows the successful completion of an earlier phase (H-01 wellhead platform) of the TGT field, which was completed earlier this year on schedule and within budget for HLJOC. As recognition for the company’s exemplary performance on the first phase of the project, HLJOC presented Honeywell with a customer award recognizing their outstanding performance.

    Honeywell Process Solutions (HPS) was selected as main contractor for this project based on its strong engineering expertise and proven track record in meeting fast-track delivery schedules. In addition, HLJOC would gain value from an integrated Honeywell solution, managed by Honeywell’s integrated control and safety system, which consists of the Experion® Process Knowledge System (PKS) and Safety Manager.

    This new project will require Honeywell to execute the design, procurement, construction, integration, testing and commissioning for the electrical and instrumentation building of the oil platform. HPS will also supply the main and backup power generators, wellhead control panel and chemical injection skid.

    One of the largest joint operating companies in Vietnam, HLJOC is a state-owned partnership comprising PetroVietnam, PTTEP, SOCO International and OPECO. When completed and at full production the facility, located in the Cuu Long Basin off the Southern Vietnam coast, will be capable of producing more than 55,000 barrels of oil per day.

    Source: PetroMin November/December 2011             < Back to News Index >        < Back to Countries Index >


    Fred. Olsen Enters LOI for FPSO Offshore Vietnam

    Fred. Olsen Production has on behalf of a joint venture to be established between Marubeni Corporation, Japan and Fred. Olsen Production ASA, entered into a letter of intent with PetroVietnam Technical Services Corporation, Vietnam, relating to contracts for construction and installation and subsequent chartering of an FPSO (the “Contracts”) for Thang Long & Dong Do oil fields offshore Vietnam. The charter contract is for a fixed period of seven years plus yearly options thereafter, with scheduled commencement 3Q 2013. The entering into of the Contracts is subject to finalization of terms and conditions.

    Source: PetroMin November/December 2011             < Back to News Index >        < Back to Countries Index >




    China
        Shale Gas Find Announced by JV  


    Shale Gas Find Announced by JV

    In the first week of December it was announced that PetroChina and Shell have discovered shale gas in Sichuan province. The amount of shale gas reserves have yet to be determined.

    A Shell spokeswoman said that gas exploration work in the Fushun-Yongchuan block is still ongoing and that Shell will complete drilling activities by year-end.

    The joint venture between PetroChina and Shell drilled its first evaluation well last December—about 13 months after signing an agreement to develop shale gas resources in the area.

    China is estimated to have reserves of as much as 1,275 trillion cubic feet of shale gas, according to the U.S. Energy Information Administration.

    Source: PetroMin November/December 2011             < Back to News Index >        < Back to Countries Index >




    South Korea
        DSME to Construct World’s Largest Floating Dock  


    DSME to Construct World’s Largest Floating Dock

    DSME started construction of the fifth Royal Dock, which will be the biggest floating dock in the world, on November 1.

    The steel cutting ceremony was held at Daehan Shipbuilding (DS) in the South Korean province of South Jeolla.

    The No.5 Royal Dock construction has been undertaken because of the increasing number of new orders for offshore projects such as FPSOs and LNG-FPSOs. As these offshore projects become larger in scale, the need for bigger production facilities increase.

    DS has been managed on an entrustment basis by DSME since last June and will be responsible for the construction of the No.5 Royal Dock. By carrying out the construction at DS it is expected that it will not only help by reducing the tight production schedule at DSME, but will also solve the issue of storage at the building site.

    This dock will be 85.6m wide, 432m long, and 130,000 DWT, so it will be relatively easy and efficient to build an 18,000TEU containership and any other large vessels up to 68m in width.

    The No.5 Royal Dock will be delivered to the Okpo shipyard on December 2012, and will be used to construct three LNG carriers starting in February 2013.

    Source: PetroMin November/December 2011             < Back to News Index >        < Back to Countries Index >




    India
        KG Stakes Transferred  

        KG-D6 Gas Output Drops  


    KG Stakes Transferred

    The Krishna-Godavari basin is witnessing hectic activity with ONGC, Cairn India and Britain’s BG Group reshuffling their stakes in exploration blocks in the basin.

    ONGC is buying stakes from Cairn India and Britain’s BG. While BG is exiting one block in the KG Basin, it remains keen to pick up 30% in another block operated by ONGC in the region, industry sources said.

    ONGC has decided to pick up a 45% stake held by BG Exploration and Production India (BGEPIL) in the shallow-water block KGOSN2004/1. ONGC already holds the remaining 55% stake.

    The shallow-water exploration block, spread over an area of 1,131 sq km, was awarded to ONGC and BGEPIL in the sixth round of NELP.

    BG’s exit from this block would not impact its interest in 30% stake in another block of ONGC, KG-DWN-98/2.

    The KG-DWN-98/2 block is seeing a lot of M&A activity. Industry sources said ONGC’s board had recently approved proposal to buy Cairn India’s 10% stake in this block for $47 million. ONGC is the operator of this block.

    Cairn India, a minority partner in the block, had made four discoveries there before selling its 90% stake to ONGC in 2005. Subsequently, ONGC made six discoveries and the its first ultra-deep water discovery, UD-1, at a record depth of 2,841 metres in this block.

    ONGC is planning to invest $7.7 billion to develop it. Industry experts say this block has the potential to become the second-largest offshore asset in the country after Reliance Industries’ prolific KG D6 block, which is located next to ONGC’s asset.

    Cairn India feels ONGC has overestimated the reserves in the block. ONGC said the difference in assessment of reserves had not influenced Cairn’s decision.

    Source: PetroMin November/December 2011             < Back to News Index >        < Back to Countries Index >


    KG-D6 Gas Output Drops

    Reliance Industries’ eastern offshore KG-D6 gas fields have seen output dipping to around 40 million standard cubic metres per day, which is the same level as 2009 when the company had started production.

    Dhirubhai-1 and 3 (D1 and D3), the first two of the 18 gas discoveries in the Krishna Godavari basin KG-DWN-98/3 or KG-D6 block in the Bay of Bengal that have been put on production, and MA oilfield in the same area produced 40.35 mmscmd in the last week of November, according to the status report filed by the company with the oil ministry here.

    The output in the week ending November 27 comprised 33.47 mmscmd from D1&D3 gas fields and 6.88 mmscmd from MA oil field.

    The KG-D6 production is lower than 61.5 mmscmd rate achieved in March 2010 as drop in pressure in the wells and an increased water ingress lead to lower perwell gas out.

    The report said of the 18 wells drilled, completed and put on production on D1&D3, four wells - A2, B1, B2 and B13 - had to be shut or closed due to high water cut/sanding issues.

    The output from KG-D6 is short of the 70.39 mmscmd 61.88 mmcmd from D1&D3 and 8.5 mmcmd from MA field) level envisaged by now as per the field development plan approved in 2006.

    Source: PetroMin November/December 2011             < Back to News Index >        < Back to Countries Index >

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