By OGJ editors
HOUSTON, Oct. 1 -- Talisman Malaysia Ltd., a unit of Calgary-based Talisman Energy Inc. and operator of Block PM-3 in the overlapping Commercial Arrangement Area (CAA) off Malaysia-Viet Nam, has begun Phases 2 & 3 oil production from the block. Oil volumes are expected to peak in early 2004.
The PM-3 CAA project involves production of oil and gas from six fields within a 1,350 sq km area in the zone between Malaysia and Viet Nam: West Bunga Kekwa, East Bunga Kekwa-Cai Nuoc, East Bunga Raya, West Bunga Raya, NW Bunga Raya, and Bunga Seroja fields.
Design and fabrication of offshore facilities began about 3 years ago. Development drilling commenced in October 2002 and one third of the planned 60-well drilling program is complete. Development drilling will continue throughout 2004, operator Talisman said.
The installed facilities, having a production capacity of 60,000 b/d of oil and 270 MMcfd of gas, include four wellhead platforms, a central processing platform, a compression annex platform, a floating storage and offloading vessel, and field pipelines.
Talisman Malaysia and Talisman Malaysia (PM3) Ltd. jointly hold a 41.44% interest in Block PM-3 CAA. Petronas Carigali Sdn. Bhd., the exploration and production subsidiary of Malaysia's state owned Petronas, holds 46.06%, and PetroVietnam Investment & Development Co., a subsidiary of PetroVietnam, the national oil company of Viet Nam, holds 12.5%.
A portion of the unitized East Bunga Kekwa - Cai Nuoc field extends onto Viet Nam Block 46-Cai Nuoc. Talisman Vietnam Ltd. is operator with a 33.15% interest in Block 46-Cai Nuoc. Petronas Carigali (Vietnam) Sdn. Bhd. holds 36.85%, and PetroVietnam 30%.
Gas sales will be at the wellhead under long-term contracts to Petronas and PetroVietnam. Petronas Carigali has completed construction of a new 170 km, 24-in. gas pipeline from PM-3 CAA to the Resak platform off Terengganu, Malaysia, and gas sales are expected to commence by the end of October. PetroVietnam confirmed it will build 330 km of 18-in. gas pipeline from PM-3 CAA to Ca Mau in southern Viet Nam.
Engineering design and procurement is under way for the Ca Mau project, and first deliveries of gas to Viet Nam are slated for 2005-06. Petronas will take the entire sales gas volume until the Ca Mau project is ready to accept gas.
Bunga Orkid-Bunga Pakma gas field complex on the north end of Block PM-3 CAA will be required to meet long-term gas sales commitments and is targeted for development in 2007. A successful exploration well and two successful appraisal wells were drilled in the area this year.
