Viet-Malay joint area yields another gas/condensate strike

Partners in Block PM-3 in the Commercial Arrangement Area (CAA) between Malaysia and Viet Nam have made another discovery with a hefty flow rate. The latest discovery well, North Bunga Pakma-1, flowed 111 MMcfd of gas and 2,036 b/d of condensate on test. It was drilled to 10,781 ft TD and cut 12 "commercially significant hydrocarbon-bearing reservoirs with a total gross thickness of 400 ft," said Stockholm's Lundin Oil AB, a participant in the block.

July 27, 1998

2 min read

Partners in Block PM-3 in the Commercial Arrangement Area (CAA) between Malaysia and Viet Nam have made another discovery with a hefty flow rate.

The latest discovery well, North Bunga Pakma-1, flowed 111 MMcfd of gas and 2,036 b/d of condensate on test. It was drilled to 10,781 ft TD and cut 12 "commercially significant hydrocarbon-bearing reservoirs with a total gross thickness of 400 ft," said Stockholm's Lundin Oil AB, a participant in the block.

North Bunga Pakma is the seventh find on this block. The new discovery lies west of Orkid field and north of Pakma field, in the northwest area of the block (see map, OGJ, Mar. 31, 1997, p. 36).

PM-3 also holds the Kekwa and Raya finds (OGJ, July 8, 1996, p. 36) and the nearby Seroja discovery. Kekwa field is producing more than 10,000 b/d of oil from a floating production, storage, and offloading vessel.

"Apart from proving up significant additional reserves, the well results have upgraded the potential of the North West Pakma and North Orkid prospects, which are adjacent to North Bunga Pakma," said Lundin Oil.

The firm's president, Ian H. Lundin, said, "The reserves discovered by North Pakma represent a significant addition to the block reserves, which are currently estimated at 140 million bbl of oil and condensate and 1.8 tcf of gas recoverable.

"Discussions are ongoing with the governments of Malaysia and Viet Nam with regards to the gas sales agreement, and we expect to have a final resolution before yearend, which will enable Phase II of the project to proceed, with a target start-up date in late 2000 at an initial rate of 250 MMcfd of gas and 40,000 b/d of oil."

The PM-3 partners will undertake development studies of the new find, with a view to incorporating North Bunga Pakma into the development plan for the entire block. They will drill two more wells on the block this year, both in Kekwa. When completed, the wells will be tied into existing production facilities.

Lundin is operator of the block and has a 41.44% working interest, held through subsidiary IPC Malaysia Ltd. 26.44% and Sands Malaysia AB 15%. Other interests in PM-3 are Petronas Carigali Sdn. Bhd. 46.06% and Petrovietnam Exploration & Production 12.5%.