Operators are racking up more gas reserves as a sprawling gas pipeline network takes shape in Southeast Asia.
Arthit gas-condensate field, in the Malay basin southeast of the main Gulf of Thailand gas producing area, has grown to significance in early 2000. Unocal Corp. listed Arthit's gross unrisked resource potential at 3-6 tcf.
Unocal found its first oil on a Pattani basin block, and Harrods Resources is pressing delineation of an oil field on Block B5/27. State PTT Exploration & Production PLC has been Harrods' partner but is selling its interest to Harrods in order to focus on Arthit development.
PTTEP officials said it decided to drop its interest in B5/27, which covers 3,700 sq km off Prachuab Khirikan, to reflect its new corporate directive to disengage from high-risk, limited-prospectivity operations.
"We think the project may not be viable, although oil has already been discovered there," said one official. Harrods has a more positive view.
Meanwhile, Unocal is looking toward longer term exploration and development on blocks off Viet Nam and adjacent to those it holds off Thailand.
Thailand's Arthit field
PTTEP's departure from B5/27 is partly to concentrate its resources on delineating Arthit field on Blocks 14A, 15A, and 16A. Four of seven wells drilled at Arthit have been successful.
The first wildcat, Arthit-15-1X, yielded 41 MMcfd of gas and 1,657 b/d of condensate in December 1999. The second well, Arthit-15-2X, flowed 19.3 MMcfd and 115 b/d of condensate. The third well, Arthit-16-1X, tested at 64.9 MMcfd of gas and 1,688 b/d of condensate. The latest well, Arthit-15-3X, gauged 63.4 MMcfd gas and 654 b/d of condensate.
PTTEP operates and holds an 80% interest in Arthit field, which is partly owned by Unocal Thailand Ltd. and Moeco Thailand Co. Unocal's interest is 16%, and it has an option to increase that.
The three blocks cover 1.5 million acres in Thai waters, and Unocal said the success at Arthit greatly increases prospectivity on adjacent Block 52/97 in Vietnam waters, where it holds 70% working interest.
Oil off Thailand
Harrods agreed to pay $4 million to acquire PTTEP's 37.5% stake in Block B5/27, giving it 100% holding.
Harrods has drilled five wells. Three flowed at rates of 1,000 b/d to 3,000 b/d each, and combined flow from all five exceeded 8,000 b/d.
In the past few years, Harrods Resources has been building its petroleum portfolio in Thailand, specifically in the gulf. It also has stakes in Block 11/38, which contains Chang Daeng field, estimated to hold gas reserves of 190 bcf; Block B12/32; and Block B2/38. Meanwhile, the firm is eying opportunities in Thailand's diamond mining and cement industries.
Egyptian businessman Mohammed Al Fayed, owner of a London department store, reportedly is negotiating with the Cambodian government to secure oil and gas drilling rights next to the central Tonle Sap lake. He held talks with Cambodian Premier Hun Sen last March, expressing his interest in exploiting two large basins that could contain hydrocarbons, industry sources said.
Unocal also found oil last fall, announcing two Pattani basin discoveries. The Yala discovery well, on Block 10A, flowed 15 MMcfd of gas and 250 b/d of condensate, and a second well flowed 3,150 b/d of oil. The discovery well on Block 11A flowed a combined 18 MMcfd of gas and 675 b/d of condensate from two zones. Unocal is operator with 60% working interest in the two blocks in the northeast part of its original concession area.
Off Viet Nam, Unocal has a combined 4.15 million acres on the Block A and B exploration areas, western portions of which lie in the Malay basin.
Unocal visualizes development of a gas market in the mid-2000s in the form of a power station southwest of Ho Chi Minh City. It sees resource potential of 2-8 tcf in the offshore area.
Off Myanmar, Unocal expects its 28.26% share in Yadana project gas deliveries to ramp up to 525 MMcfd by late 2001.
