TOKYO�Japan's Nippon Mitsubishi Oil Corp. on Thursday said its exploration unit has confirmed a natural gas and condensate discovery in the Timor Sea off northwest Australia. Drilled by Nippon Oil Exploration Ltd., the well flowed 65.5 MMcfd of natural gas and 1,921 b/d of condensate on test.
The third appraisal well drilled on Block AC/P23 cut 280 m of net gas pay. The block is about 700 km west of Darwin, Australia.
Nippon Mitsubishi said it has not yet determined the size of the discovery, and drilling is continuing.
Nippon Mitsubishi's project company, Nippon Oil Exploration (Vulcan) Pty. Ltd., has been drilling on the block since September 1997. It acquired drilling rights on the acreage in an Australian licensing round in 1996.
Nippon Oil Exploration holds a 75% interest in the block. The remainder is held by Timor Sea Exploration Pty. Ltd., of which state-run Japan National Oil Corp (JNOC) owns 50% and trading house Mitsui & Co. Ltd. and Mitsui Oil Exploration Co. Ltd. each hold 25%.
Nippon Oil has received loans and investments from JNOC. Nippon Mitsubishi owns 51% of the project company, with the rest owned by JNOC.
