China
Shell China E&P Co. Ltd. signed a production-sharing contract with China National Offshore Oil Corp. for Block 35/10 in the Yinggehai basin in the western South China Sea.
The block covers 3,427 sq km in 80-110 m of water. Shell will shoot 3D seismic and may drill exploratory wells and will bear all expenses. CNOOC has the right to participate in up to 51% working interest in any commercial discovery.
Grenada
Global Petroleum Group Ltd. let a contract to SeaBird Exploration PLC for a marine 3D seismic survey in the Grenada offshore basin.
GPG revealed that based on its 2D seismic lines recently processed by Tricon Geophysics Inc., Houston, the area to be surveyed "has been characterized as having a high potential for significant hydrocarbon deposits."
In this context, GPG and Blackwater Subsea LLC, Houston, are in talks on the final design of a development plan and project management for the initial drilling phase scheduled during 2014. SeaBird is deploying to Grenada its modern equipped eight-streamer 3D vessel Geo Pacific that recently successfully completed another 3D survey in the Caribbean region.
Indonesia
A unit of Lundin Petroleum AB, Stockholm, signed a production-sharing contract amendment with SKKMigas to substitute the existing Sareba block acreage for acreage named Cendrawasih VII off northeastern Indonesia.
The new block is awarded because the existing block acreage has been declared a protected nature conservation area, said Lundin Sareba BV.
The lightly explored CVII block covers 5,545 sq km in the shallow water portion of the Mamberamo delta on the West Papua northern shore. It contains an undeveloped gas discovery in Pliocene turbidite reservoirs.
Large carbonate build-ups also were identified on 950 sq km of 3D seismic shot in 2009. Lundin Petroleum expects to reprocess the 3D seismic survey prior to possible future drilling.
The fulfilled Sareba Block commitments are carried over to the CVII Block PSC, and the remaining financial commitment for the purchase of geological and geophysical data shall be completed in year one of the PSC amendment agreement.
