Thai-Malay JDA exploration on brisk pace

Exploration spending on the gas-prone Thai-Malay continental shelf in the South China Sea soared to more than a cumulative $208 million, making it one of Asia's most capital intensive wildcatting areas.

Total exploration expenditure on the 7,250 sq km Joint Development Area (JDA) has exceeded the minimum spending of $43 million stipulated in the first 5 year obligations that end in April 1999.

Such a high pace of exploration reflects strong enthusiasm of the Malayasia-Thailand Joint Authority (MTJA), the statutory body vested with the rights for exploiting JDA, and its three production sharing contractors to establish substantial gas reserves in the once disputed waters.

Their efforts have already paid off as they are now able to report as much as 13 tcf of gas reserves, mostly on the two larger JDA blocks, an MTJA progress report revealed (OGJ, June 2, 1997, p. 36).

Block A-18

Gas reserves on Block A-18, operated by the joint venture of Petronas Cariga* of Malaysia and Triton Energy Corp., Dallas, were put at 10 tcf.

Total gas reserves on Block B-17, operated by PTT Exploration & Production plc of Thailand (part of Petroleum Authority of Thailand) and Petronas Carigali, the exploration arm of Malaysian state oil firm Petronas, were estimated to contain 3 tcf.

As of April 1997, 5,800 km of 2D seismic and 1,154 sq km of 3D seismic were shot and 11 wells were drilled. Expenditure to date has exceeded $159 million. That resulted in discovery of five gas fields: Cakerawala, Suriya, Bumi, Senja, and Bulan.

The current five year oblitations only required shooting of 5,500 km of 2D seismic, drilling of three exploration wells, and minimum expenditure of $25 million.

Block B-17

At Block B-17, 6,100 km of 2D seismic and 1,100 sq km of 3D seismic were acquired, with seven wells drilled, total spending more than $49 million.

The five year commitment calls for shooting 5,500 km of 2D seismic, drilling two exploration wells, and $18 million minimum spending. Four gas fields were discovered on B-17: Muda, Tapi, Jengka, and Amarit.

As intense as the exploration effort has been, MTJA along with its production sharing contractors look set to continue with high levels of activity given that so many discoveries have been made.

MTJA and the production sharing contractor in Block A-18-Carigali-Triton Operating Co. Sdn. Bhd. (CTOC)-is entering the development stage for Cakerawala field, following an agreement to sell the gas to Thailand through PTT.

The 20 year accord, expected to be formalized soon, calls for delivery of 390 MMcfd to PTT during the first 10 years and 195 MMcfd in the succeeding 10 years. The wellhead price of Cakerawala gas was negotiated at $2.50-2.60/MMBTU in first quarter 2000, the contractual start-up period.