MARATHON KICKS OFF DRILLING CAMPAIGN IN TIMOR GAP AREA
Marathon Oil Co. has spudded its 1 Hydra wildcat, signaling the start of a campaign that will see 24 wells drilled in the Timor Gap during the next 2 years, County NatWest WoodMac, Edinburgh, reports.
The well is the first in a Zone of Cooperation agreed to by Australia and Indonesia to allow exploration of the Timor Sea. Drillsite is on Zone of Cooperation Area (ZOCA) 91-11, one of two a Marathon group acquired late in 1991 (OGJ, Jan. 6, 1992, p. 93).
The cooperation zone ties between Indonesia's East Timor province and Australia's Northern Territory.
Since the cooperation treaty was signed Dec. 11, 1989, about a dozen exploration licenses have been issue, most carrying heavy work commitments.
More than 35,000 km of seismic data were acquired in the area during 1992.
The 1 Hydra kicks off a three well Marathon program to explore the Hydra, Basilisk, and Naga prospects. The Hydra is a tight hole, although County NatWest reports it is scheduled to reach total depth 10,800 ft Jan. 11.
Five operating groups are expected to drill seven wells in the third or fourth quarter of 1993.
"Beyond 1994, the picture is less clear," the analyst said. "A total of 26 wells has been committed between 1995 and 1997. However, all but two commitments are negotiable. Moreover, contractors have the option to relinquish the permits after the first 3 years."
Total compulsory expenditure in the area is $224 million, of which Marathon will contribute $40 million during the first 3 years.
Contractors have experienced difficulties interpreting the cooperation treaty, County NatWest said. Pioneering work by Marathon may have set some important precedents, but the situation is expected to deteriorate in mid-1993, when as many as five joint venture groups will be vying for drilling slots.
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