Exploratory drilling off Viet Nam is set to snowball, with 28 wells to be spudded this i,ear compared with only two in 1992, Wood Mackenzie Consultants Ltd., Edinburgh, predicts.
About 70 exploration wells are predicted to be drilled during 1993-97, of which more than three-fourths will be drilled in the South Con Son basin. Seismic survey activity is expected to remain buoyant, with acquisition of 30,000 line km of 2D and 3D data covering 2,000 sq km planned this year.
Liquids production will slip to an average 92,000 b/d in 1993 from last year's peak of 96,000 b/d, Wood Mackenzie said. All Viet Nam's oil comes from one field, Bach Ho, placed on stream by the Russian/Vietnamese combine Vietsovpetro in June 1986.
Vietnam's petroleum reserves are estimated at 900 million bbl oil equivalent, of which a little more than 10% had been produced by the end of 1992.
Most remaining reserves are said to lie in Dai Hung field, awarded for development in January to a group led by BHP Petroleum Pty. Ltd., Melbourne. BHP estimated Dai Hung reserves at 800 million bbl of light, sweet crude and 2-3 tcf of gas (OGJ, Jan. 11, p. 23).
Wood Mackenzie estimated reserves in Dai Hung and Rong fields as 400 million bbl and 50-100 million bbl of oil, respectively, with Dai Hung also holding 1 tcf of gas
Vietsovpetro's plans to develop Rong field are thought to favor a jack up rig converted for production, with recovered oil to be stored on a tanker prior to export. The $250 million project is expected on stream in 1995.
Assuming Dai Hung and Rong field developments proceed as planned, the analyst predicted Viet Nam's liquids production could reach 210,000 b/d before 2000.
CONTRACT EXTENSIONS
Wood Mackenzie counted 23 production sharing contracts active with Viet Nam, a record high for that country. Ten of them were awarded in second half 1992, covering areas relinquished by Vietsovpetro in the South Con Son basin.
The Dai Hung development contract is the only one awarded this year, although Wood Mackenzie said state company Petrovietnam granted extensions to some existing contracts.
Petro-Canada won a 6 month extension on Blocks 03, 12A and 20, while Sceptre Resources Ltd., Calgary, gained a 1 year extension on Block 111. Wood Mackenzie said Cairn Energy plc, Edinburgh, Enterprise Oil plc, London, and International Petroleum Ltd., Dubai, were negotiating with Petrovietnam to extend their contracts.
Now that most of Viet Nam's prospective acreage is under license, Wood Mackenzie does not expect last year's level of acreage awards to be repeated soon.
However, Petrovietnam is expected to invite bids for remaining offshore blocks, including deepwater acreage in the eastern South Con Son basin, after the end of this year.
Block 05-1 in the South Con Son basin is likely to generate the most interest because it borders the Dai Hung field block. Block 05-1 is said to contain the undrilled Blue Dragon prospect, reputed to be of a size similar to Dai Hung.
1993 WILDCATS
Eight Vietnamese wildcats have been drilled this year, of which three found hydrocarbons. BP Exploration Operating Co. Ltd. is said to have had the most notable successes, with its 1 Lan Tay and 1 Lan Do gas strikes on Block 06.
The 1 Lan Tay was temporarily abandoned in March after a blowout, while results of drillstem tests in 1 Lan Do have not been revealed.
Petronas Carigali Sdn. Bhd., the operating arm of Malaysia's state oil company found oil with its IX Jade on Block 02. The well is said to have tested 100-300 b/d of oil with a gravity of less than 10 and was abandoned as noncommercial.
Wood Mackenzie said BP will be the most active foreign explorationist in Viet Nam this year with eight exploration wells scheduled. BHP plans four appraisal wells in Dai Hung field in the second half.
Vietnamese authorities were reported to have said the producing Bach Ho field ultimately will require 13 platforms. Eight are in place now, with crude being stored in a 150,000 dwt tanker prior to offloading for export.
Bach Ho facilities are thought to be in a poor state of repair, with the authorities suggesting a partner may be sought to assist in managing field development.
Copyright 1993 Oil & Gas Journal. All Rights Reserved.
