China
PetroChina Co. will offer 18 oil and gas blocks in the Tarim, Ordos, and Songliao basins for international tender.
The blocks, 13 of which are in the west, include Kela II gas field in the Tarim basin, one of China's largest gas fields.
One of the blocks is for risk exploration, in which foreign companies would take all the risk and share the discoveries with PetroChina in case of commercial finds. The other blocks include 3 for gas development, 11 for oil development, and 3 for production improvement.
PetroChina has signed 49 contracts with foreign oil companies, but few have had any discoveries.
Zeng Peiyan, minister of the state Development Planning Commission, said foreign companies investing in western China E&P would get a preferential tax of 15% on oil and gas production, vs. the normal 30%.
Portugal
Mohave Oil & Gas Corp., Houston, plans to spud two wells by yearend in the Lusitanian basin to meet work commitments for the Sao Pedro de Muel and Sao Mamede concessions.
Both wells will be in less than 100 m of water. One well has gas potential in Triassic Silves formation sandstones as the primary target, with secondary oil objectives in the overlying Jurassic carbonate section. The other well specifically targets oil reserves in Middle Jurassic oolite reservoirs as well as deeper closure at the Triassic Silves level.
Mohave will acquire more onshore seismic data on several concessions in the next 6 months and has interest available for farmout (OGJ, Dec. 8, 1997, p. 67).
Gulf of Mexico
ATP Oil & Gas Corp., Houston, operator, and Unocal Corp. started production from two deepwater subsea wells on Garden Banks Block 409 (Ladybug) field.
The gross production level is 8,000 b/d of oil and 6 MMcfd of gas, which will move through two 6-in., 18-mile flowlines. Ladybug, in 1,360 ft of water, is ATP's first deepwater subsea development project.
Louisiana
Stockholders of Bidder Communications Inc., Dallas, approved purchase of Southern States Gas Gathering LLC in a diversification move.
Bidder did not disclose the price but said Southern States' replacement value is $2.3 million.
Established in 1994 and inactive since December 1999, the gathering system is in giant Caddo-Pine Island oil field, Caddo and Bossier parishes.
Wells throughout the field are venting associated gas, Bidder said. It said the 65-mile system could gather 5 MMcfd from 3,000 wells.
Wyoming
Ultra Petroleum Corp., Houston, reported a high level of successful drilling on the Pinedale anticline and in Jonah gas and condensate field in the Green River basin in the first three quarters of 2001.
The company participated in 16 Pinedale and 8 Jonah wells, all successful. Recent wells appear to be capable of 10 MMcfd/well and contain 8 bcfe/well of reserves.
