Cornea set for 5-year assessment by local JV

The controversial Cornea oil and gas field in the Browse basin offshore Western Australia is set for a thorough 5-year assessment by a joint venture of local junior companies banding together as Cornea Resources Pty Ltd.

The group has been awarded retention licence WA-54-R, which covers 6 graticular blocks encompassing the discovery. The permit term is 5 years.

Cornea Resources chairman, the veteran oil and gas entrepreneur and solicitor Geoff Albers, said a program to test the completion design and long-term production behaviour of the various reservoirs penetrated by wells in the field is the only way to assess whether they can support a commercial development.

The P50 oil resource estimate is about 410 million bbl in place, but the recovery factor is thought to be low. This, he said, presents a technical challenge to any would-be developer.

The JV proposes to conduct a series of engineering study programs to address these challenges to production and perceived barriers to commercialization.

Subject to the study results, a production test program will be initiated in the fourth permit year.

Cornea hit the headlines when discovered by Shell in the mid-1990s. Shell subsequently made a huge work program bid for surrounding open acreage in the 1996 offshore bidding round, including the proposal to drill no less than 42 wells in a $30 million exploration program during the 6-year permit term.

After several wells Shell realized that the initial potential could not be sustained and applied for a variance of its commitments. After a lot of controversy, industry angst, and media hostility, the government acquiesced to the request at Cornea, but forced Shell to use its spending commitments in other permits.

Cornea Resources believes a more measured step-by-step approach will answer the question of commercial potential.

Related Articles

Maersk to divest oil field, write off $1.7 billion in Brazil assets

07/08/2014 Maersk Oil, a wholly owned subsidiary of AP Moller-Maersk AS of Copenhagen, has opted to write off $1.7 billion in investments in Brazil’s Wahoo an...

Shell bows out of Kidan gas project in Saudi Arabia

07/08/2014

Royal Dutch Shell PLC confirmed it will bow out of the Kidan natural gas development project in Saudi Arabia’s Empty Quarter.

Mongolian petroleum law passage aims to boost foreign investment

07/08/2014

Wolf Petroleum Ltd., Perth, reported the passing of a new petroleum law in Mongolia designed to boost foreign investment in the country.

Wintershall to farm in to Luno II lease offshore Norway

07/07/2014 Wintershall Norge AS has agreed to acquire 15% interest in production license 359 (PL359), which encompasses the Luno II discovery, from Lundin Nor...

Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!

 

Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected