Exploration-production activity in the diverse Asia-Pacific region appears set for a surge.
The area's main traditional producers, Indonesia and Malaysia, have taken steps recently to encourage exploration and production. And countries with little or no drilling in the past have begun to make acreage available to international companies.
In an overview of regional drilling, James G. Ross of the U.K. firm Gaffney, Cline & Associates Ltd. points to activity boosts likely from large tracts released recently in sparsely explored parts of Indochina and to increases in the number of operators in traditional drilling provinces such as Malaysia and Thailand.
Also, demand for natural gas for a rapidly growing LNG trade will keep development drilling strong in areas of recent discoveries.
Here's how Ross assesses current activity in the region, country by country:
BRUNEI
Exploratory wells will total 20 in Brunei this year-12 onshore and 8 offshore. The total includes two wells scheduled this quarter by Ste. Nationale Elf Aquitaine.
A Royal Dutch/Shell Group unit will drill all of this year's development wells, estimated at 18, all offshore.
Shell is appraising the Rasau structure onshore. A blowout at the Rasau 17 well hampered work. Shell also is delineating the Danau structure offshore.
CHINA
Companies will drill 20 exploratory wells and 30 development wells off China in 1990. Most of the activity is off South China in the Pearl River basin and Beibu basin. ACT Operators Group (Agip Overseas Ltd., Chevron Orient Inc., and Texaco Orient Petroleum Co.) is the most active operator.
Offshore development work includes Bo Zhong 34-2 and 34-4, Jinzhou 20-2, and Suizhong 36-1 by Bohai Oil Corp. in Bohai basin; Huizhou 26-1 by ACT in Beibu basin; and Yacheng 13-1 by ARCO in Yinggehai basin.
Prospective development projects include the Liuhua 11-1 structure, where Amoco Production Co. is conducting a long term production test. Also, Lufeng 13-1 development by Japex Huanan Oil Operating Group recently received government approval.
An Occidental Petroleum Corp. unit is conducting an extended production test of Lufeng 22-1 field. An Esso/Shell combine is seeking markets for natural gas from Wenchang 9-2-1 field, and Phillips Petroleum International Corp. Asia and Pecten Orient Co. are studying development of Xijiang 24-3 oil field. Other development prospects include China National Offshore Oil Corp.'s Jinzhou 9-3 gas/condensate discovery and Jinzhou 21-1 oil, gas, and condensate strike in Bohai basin.
INDONESIA
About 150 exploratory wells and an estimated 500 development wells will be drilled in Indonesia in 1990. The totals include 65 offshore exploratory wells and less than 100 offshore development wells.
Onshore exploration in the first half of the year concentrated in South Sumatra basin, led by Enim Oil Co. Ltd., Asamera Oil Indonesia Inc., and state owned Pertamina.
Most first half onshore development occurred at Caltex Pacific Indonesia Ltd.'s Duri field in Central Sumatra basin.
ARCO led offshore exploration in Northwest Java basin. Maxus Southeast Sumatra Inc. was an active development driller in the period with its work in Cinta, Intan, and Widuri fields.
ARCO will develop Pagerungan field off East Java to provide gas for fuel and feedstock to the Gresik power station, a fertilizer plant, and industrial customers.
Conoco Indonesia Inc. and Esso Indonesia Inc. plan to develop fields in Natuna Sea pending installation of a gas pipeline.
LAOS
Laos has let production sharing contracts for two blocks in the Savannakhet basin in the southern part of the country. Drilling isn't expected before 1993.
An Enterprise/Cie. Europeenne des Petroles combine has a contract covering a 20,200 sq km block, and Hunt Oil Co. has the contract for a 26,000 sq km block. Hunt's block is the only one with a drilling commitment.
Laos soon will release for bidding two blocks in Vientiane basin in the northwestern part of the country.
KAMPUCHEA
International companies have expressed interest in Kampuchea but are not expected to seek acreage until the country's government stabilizes. Also clouding the outlook is an offshore boundary dispute with Viet Nam and Thailand.
Kampuchea has had no drilling by international oil companies since the early 1970s.
MALAYSIA
A record 16 operators will participate in drilling of about 50 exploratory wells in Malaysia this year. Most of the wells will be offshore.
All current development drilling-totaling about 90 wells in 1990-is offshore and operated by Esso Malaysia and Shell. Activity is about equally divided between the Terengganu offshore in Malay basin and the offshore Sabah and Sarawak basins.
Fields possibly to be developed include Shell's Luconia gas discoveries near the Baram Delta gas gathering system, Overseas Petroleum & Investment Corp.'s South Acis discovery, and Shell's Kinabalu and Nosong strikes.
Malaysia is expected to offer deepwater acreage under revised licensing terms soon.
MYANMAR
Myanmar has held three bidding rounds and signed 11 production sharing contracts and one joint feasibility study contract with international companies. Several farmout proposals await government approval.
Contractors spent most of this year shooting seismic surveys. Some will be ready to begin exploratory drilling soon.
Petronas of Malaysia, Petro-Canada, and China Petroleum Engineering & Construction Corp. have offered to help with tertiary recovery in old oil fields in the central part of the country.
PAPUA NEW GUINEA
Companies will drill 20 exploratory wells this year in Papua New Guinea, 15 of them onshore.
British Petroleum Co. plc has submitted development plans for onshore Hides gas field, and Chevron Niugini Pty. Ltd. plans to develop its onshore Kutubu Lake project, covering lagifu, Hedinia, and Agogo fields. No development drilling is expected before yearend.
Offshore, International Petroleum Corp. has two discoveries that might eventually be developed: Pandora gas field and Pasca gas/condensate field.
PHILIPPINES
Operators will drill an estimated 10 exploratory wells in the Philippines in 1990-5 onshore and 5 offshore. Two or three development wells may be drilled.
Most offshore activity is off Palawan Island. Onshore work is mainly on Luzon and Cebu.
An acute power shortage and oil import problems associated with the Iraq-Kuwait crisis have forced the country to adopt strict conservation measures.
The pressures might help the development outlook for Occidental Philippines Inc.'s deepwater Camago gas strike off northern Palawan.
THAILAND
Fifteen exploratory wells will be drilled in Thailand this year, nine of them offshore. Operators will drill about 80 development wells, more than 70% of them offshore.
Most active areas are the Chao Phraya basin onshore and the Pattani Trough in the Gulf of Thailand.
Thailand offered 104 blocks onshore and off in a bidding round in July. It also reached agreement with Malaysia on exploration and development of a 7,300 sq km offshore area that had been under dispute for a number of years.
Total-CFP won a contract to conduct a seabed survey on the gas-bearing offshore "B" structure. It will determine sites of three drilling platforms and a central processing platform.
Development of Premier Consolidated Oilfields plc's Songkhla discovery off the southeastern Thai peninsula is under review following disappointing appraisal drilling. To the north, Thai Shell Exploration & Production's suspended Nang Nuan oil field might resume production by early next year.
The main offshore producer, Unocal Thailand Ltd., will start gas production during the next 10 years from Funan, Jakrawan, Trat, Pakarang, Surat, and Gomin fields to meet requirements under its third gas sales contract with the government.
Onshore, BP plans to develop small BP1-1 and BP1-3 oil fields, starting production late this year or early next year. Esso is developing Nam Phong gas field on the Khorat Plateau.
VIET NAM
Non-Vietnamese companies will drill an estimated 10 exploratory wells off Viet Nam this year. Development drilling, all currently conducted with Soviet assistance, will total about 20 wells.
Sixteen international oil companies are working in Viet Nam under nine production sharing contracts let so far.
A Petrofina SA unit recently acquired 100% interest in a 27,000 sq km block off the country's southwestern coast. Enterprise, Total, and Shell have drilled elsewhere offshore but haven't reported commercial discoveries.
Viet Nam plans to revise its petroleum legislation. It's expected to release 200 blocks under the next bidding round, concentrating on acreage around the Spratly Islands. Negotiations continue for blocks released earlier.
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