BHP GROUP PLANS SKUA DEVELOPMENT PROJECT

A group led by BHP Petroleum Pty. Ltd. has approved a $175 million (Australian) development plan for Skua, the third commercial oil field in the Timor Sea off northwestern Australia. Meantime, a group led by Santos Ltd. is drilling an appraisal to its December 1989 Talbot crude oil and natural gas discovery in the Timor Sea. Plans call for the BHP group to install a floating production/storage system, similar to that used at nearby Jabiru field, to develop Skua field on Permit AC/P2.

June 18, 1990

3 min read

A group led by BHP Petroleum Pty. Ltd. has approved a $175 million (Australian) development plan for Skua, the third commercial oil field in the Timor Sea off northwestern Australia.

Meantime, a group led by Santos Ltd. is drilling an appraisal to its December 1989 Talbot crude oil and natural gas discovery in the Timor Sea.

SKUA PLANS

Plans call for the BHP group to install a floating production/storage system, similar to that used at nearby Jabiru field, to develop Skua field on Permit AC/P2.

Permit AC/P2 is the so-called Remainder block about 650 km west of Darwin (see map, OGJ, Nov. 27, 1989, p. 20).

The project will entail converting a crude oil tanker that can be disconnected from its single point mooring in severe weather.

It will differ from Challis field development, also in the Timor Sea, in which the production/storage barge was purpose built and cannot be disconnected from its riser system.

Expected Skua production rates are not disclosed, but BHP estimates the field's reserves at 30.5 million bbl and the group projects a productive life of 8-9 years. Start-up is expected in December 1991.

The group has completed arrangements to buy a tanker for the project.

BHP and partners are applying for government permit to develop the offshore field, which will come under Australia's Resource Rent Tax regime.

The first wells at Skua, drilled more than 15 years ago, were counted as dry holes that later proved to be off structure.

In 1987, BHP 3 Skua tapped the oil reservoir. Three appraisal wells have been drilled since then, but commerciality has been hard to determine because of the field's high associated gas volume.

Interests in the field are held by operator BHP Petroleum (Timor Sea) Pty. Ltd. 43.0295%, Santos Ltd. unit Peko Oil Ltd. 18.6137% Santos (NT) Pty. Ltd 11.975%, Ampol Exploration Ltd. 9.2121%, Command Petroleum Holdings NL 9.0447%, Norcen International Ltd. 5%, Minora Resources NL unit Weeks Exploration Pty. Ltd. 3%, and Minora Energy Ltd. 0.125%.

TALBOT WELL

Santos is drilling 2 Talbot with the Robert F. Bauer drillship 1.35 km west-southwest of its 1 Talbot discovery.

It is programmed to reach 5,577 ft TD this month.

The discovery well, the first on Permit AC/P12, flowed 4,300 b/d of oil and 3.8 MMcfd of gas from Triassic Challis sandstone.

Interests are held by Santos, Total Oil & Gas Australia Pty. Ltd., and Idemitsu Timor Sea Exploration 25% each, Norcen 15%, and Beach Petroleum NL unit Asisun Pty. Ltd. 1 0%.