AED Oil near end of 3D seismic work over Puffin field
AED Oil Ltd., Melbourne, and partner China Petroleum & Chemical Corp. (Sinopec) are nearing completion of a 3D seismic acquisition program over Puffin oil field in the Timor Sea.
MELBOURNE, Mar. 16 -- AED Oil Ltd., Melbourne, and partner China Petroleum & Chemical Corp. (Sinopec) are nearing completion of a 3D seismic acquisition program over Puffin oil field in the Timor Sea. The program was run in an effort to establish drilling targets and set up a field development plan.
AED says the seismic work in the AC/L6 and AC/P22 permits will assist in defining future exploration, appraisal, and development plans for the field.
Production from Puffin has been suspended since May 2009 when Sinopec and AED terminated Sea Production’s charter contract for the use of the field’s Front Puffin floating production, storage, and offloading vessel for alleged breaches relating to occupational health, safety, and environment regulations.
The joint venture has begun a process of dispute resolution and confidential arbitration with Sea Production.
The JV also is managing the decommissioning of the FPSO—a process that has cost $10.3 million (Aus.) and contributed largely to AED’s $13.8 million (Aus.) net loss for the first half of the company’s 2009-10 financial year.
AED holds 40% interest in Puffin field, while Sinopec holds 60%.