Rick Wilkinson
OGJ Correspondent
MELBOURNE, Oct. 29 -- Thailand’s PTT Exploration & Production PLC (PTTEP) has acquired a 50% stake in the undeveloped Oliver oil field in the Timor Sea from Stuart Petroleum Ltd., Adelaide, for $7.5 million.
The field is in the Ashmore-Cartier region (Permit AC/P33). Under the sale agreement, PTTEP will fund the drilling of the Oliver-2 appraisal well, which spudded last week using the Songa Venus semisubmersible drilling rig.
PTTEP will pick up Stuart’s obligation to fund the drilling of Oliver-2 and undertake all engineering studies up to a final investment decision on field development. It’s looking for an increase in the down-dip oil potential of the Oliver resource to the northeast where a similar structure may be in communication with the deeper parts of the discovery.
If the appraisal is successful, the subsequent development schedule calls for first oil production by yearend 2011.
The most likely approach would be a subsea development connected to a floating production, storage, and offloading vessel. This would probably include a liquids stripping operation with gas reinjection.
Estimated recoverable liquids (oil and condensate) for Oliver are 10-33 million bbl. The Northern Territory Authorities estimate 21.4 million bbl of oil and liquids and 310 bcf of gas.
Oliver was discovered by BHP Petroleum Ltd. in 1988, but it was deemed uneconomic at the time. The field lies 30 km north of the Jabiru oil field and 700 km west of Darwin.
Stuart Petroleum acquired its stake in Oliver from Albers Group of Cos., Melbourne, in August 2008.
Photo from SABIC Limburg BV.
US Department of the Interior.
