Area Drilling

Nov. 13, 2000
Chevron Corp. awarded Chinese Offshore Oil Geophysical Corp. a contract to acquire 1,165 sq km of 3D seismic data over blocks 02/31 and 06/17 in northeastern Bohai Bay, said China Offshore Oil Corp.

China

Chevron Corp. awarded Chinese Offshore Oil Geophysical Corp. a contract to acquire 1,165 sq km of 3D seismic data over blocks 02/31 and 06/17 in northeastern Bohai Bay, said China Offshore Oil Corp.

That is the biggest 3D seismic contract COOGC has won through a competitive bidding process, officials said. The Oriental Pearl vessel is expected to complete the seismic shoot within 120 days.

Chevron also holds deep rights on the Zhanhuadong Block beneath supergiant Sheng* oil field south of the bay and has mapped pre-Tertiary prospects there.

France

TGS-NOPEC (UK) Ltd. has requested access to a 93,000 sq km area in the Bay of Biscay along the continental slope-called 9264 Gulf of Gascogne-where water can exceed 1,000 m deep, to carry out a 2-year seismic campaign.

The request, which applies to an area considered environmentally sensitive, is being examined by Brittany's local subdivision of the Industry Ministry.

Indonesia

Kufpec Indonesia Ltd. awarded contracts worth $61.7 million to a consortium of PT Istana Karang Laut (IKL) and Daewoo Corp. for development of Oseil onshore oil field (OGJ, Aug. 23, 1999, p. 88).

Oseil, within the onshore-offshore Seram Joint Venture area in the Maluku Sea, is scheduled to come on stream in first quarter 2002. Initial production is anticipated at 12,000-18,000 b/d of oil.

IKL, the lead consortium member, is a private Indonesian company set up in 1981 to supply process equipment. The lump sum comprises engineering, procurement, construction, and commissioning of Phase 1 gathering, processing, and export facilities.

Interests are Kufpec 92.5%, Kalrez Petroleum (Seram) Ltd. 2.5%, and Canada Northwest Energy (Seram) Ltd. (Sherritt International Corp.) 5%.

Mozambique

ENH and Wilrusco, Plano, Tex., signed a technical evaluation agreement (TEA) to assess the exploration potential of the Inhaminga Block onshore north of Beira.

Under a 1-year agreement, Wilrusco is to interpret available seismic and well data and provide ENH with the interpretations in the form of a report with maps and illustrations. In return Wilrusco has the exclusive right to enter into negotiations for a Production Sharing Agreement (PSA).

The Inhaminga Block was not included in the 2000 License Round.

Paul Willette, Wilrusco president, was ARCO's exploration manager during successful drilling operations at Temane in 1998. Wilrusco has developed leads and prospects that have high potential for the production of gas and condensate.

New Zealand

Magellan Petroleum Australia Ltd., Melbourne, returned to New Zealand petroleum exploration after an absence of more than 30 years, taking a farmout on the onshore portion of PEP 38256 on the eastern part of the South Island in the Canterbury basin (OGJ, Dec. 15, 1997, p. 57).

The permit covers more than 5,600 sq km in virtually unexplored territory.

Magellan acquired a 20% working interest in the southern sector of the permit from participant AMG Oil (NZ) Ltd. for contributing to the cost of drilling to 1,750 m the Ealing-1 wildcat, spudded in mid-October 120 km southwest of Christchurch. Primary objective is Upper Eocene Homebush sandstone, with several secondary targets above and below.

Pakistan

The government's Privatisation Commission appointed Gaffney, Cline & Associates, Dallas, and Chase JF (Jardine Fleming), Karachi, as financial advisers concerning the sale of the government's working interests in nine oil and gas licenses.

The interests are: Badin I (40%) and Badin II (25%) in fields operated by Union Texas Pakistan (BP); Minwal and Pariwa* (17.5% each), and Turkwal (20%) operated by Pakistan Oilfields Ltd.; Mazarani (12.5%) and Adhi (11%) operated by Pakistan Petroleum Ltd.; and Ratana and Dhurnal (25% each) operated by Orient Petroleum Inc.

Net production to the government's interests in the 9 licenses totals 5,000 b/d of oil and 200 MMcfd of gas.

Philippines

The Shell Philippines Exploration BV-led group will invest $500 million to drill four wells in Malampaya gas field in 2001-03.

Spex Managing Director David Greer said the wells would help confirm the extent of an oil accumulation in the field. Malampaya is estimated to contain 50 million bbl of recoverable oil and 2.6 tcf of gas.

Shell, Texaco, and Philippine National Oil Co. have drilled 9 wells at Malampaya. The $500 million will be in addition to original development costs estimated at $2.5 billion.

Tanzania

Tanganyika Oil Co. Ltd., Vancouver, BC, received approval to drill at least two exploratory wells on the 1.25-million-acre Mandawa concession in southern Tanzania.

Tanganyika and its partner Energy Africa Tanzania Ltd. were offloading a rig at the port of Kilwa in early November. They will spud the Mbate-1 well in mid-November and expect to drill to 8,000 ft. The companies then plan to spud the Mita Alpha-1 well (OGJ, Oct. 7, 1996, p. 109).

Energy Africa is taking a farmout on the concession for a 25% holding; Tanganyika will retain 75%.

Indiana

Quicksilver Resources Inc., Fort Worth, plans to drill 5 wells by yearend out of more than 50 drillsites remaining on Illinois basin properties acquired from Dominion Reserves-Indiana Inc.

The Corydon properties, in Harrison County, Ind., and Meade County, Ky., produce 2 MMcfd of gas from Devonian New Albany shale.

The properties contain 22 producing gas wells, gathering systems, a 50% interest in more than 20,000 undeveloped acres, and 80% of the GTG Pipeline, an 8 mile, 12-in. system in both counties.

Ohio

North Coast Energy Inc., Twinsburg, Ohio, said it encountered pay in the Knox unconformity at 5,947-6,125 ft at the CR 555 well, Muskingham County.

Test rate was not available. The well is to be hooked up by late November.

The company's fourth Knox discovery on the 13,000-acre Adamsville prospect, it exhibited "twice the units of gas while drilling as our prior Adamsville discoveries," said North Coast, controlled since 1997 by Dutch energy concern NUON International.

Tennessee

Penn Virginia Oil & Gas Corp., Radnor, Pa., staked a rank wildcat in Hawkins County.

The BG1 Seay, in 11-3s-78e, 6 miles south of Rogersville, is projected to Upper Cambrian Nolichucky shale at 7,200 ft, IHS Energy Group reported.

The site is about 22 miles southeast of Swan Creek oil and gas field in Hancock County.

Utah

Aviara Energy Corp., Houston, staked a horizontal well to the Cane Creek member of Pennsylvanian Paradox between Bartlett Flat and Big Flat fields.

The 3-1 Kane Springs-Federal, in 3-26s-19e, Grand County, is to have a northwest-trending lateral at 7,350 ft true vertical depth, IHS reported.