Lundin to add production well off Malaysia - Oil & Gas Journal, October 18
Stockholm-based Lundin Oil AB and partners have
announced plans to drill another production well under
Phase 1 development of Block PM-3 in the Commercial
Arrangement Area (CAA) between Malaysia and Viet Nam.
The CAA covers a once-disputed area on which Malaysia
and Viet Nam reached a settlement in 1996. Production
from Bunga Kekwa field, where the new well will be
drilled, began in 1997.
The partners will drill Well A7 on West Bunga Kekwa,
southeast of Well A4, which has produced about one
third of PM-3 production to date (see map). The group
will subcontract a drilling rig from member Petronas
Carigali Sdn. Bhd.; the partners expect to spud the
new well in late November.
The firms hope the well will produce 2,000-3,000 b/d
of oil, increasing production to as much as 17,000 b/d
from the current 14,000 b/d.
Ian Lundin, president of Lundin Oil, said, "It is
expected that the drilling of the A7 well will
materially increase production levels, extending the
economic life of Phase 1 well into the next decade."
Phase 2 of PM-3 development involves boosting
production to 40,000 b/d of oil and 250 MMcfd of gas.
Phase 2 has been postponed, however, first by the
Asian financial crisis of 1997-98 and later because
the partners have had difficulty finding buyers for
the gas.
PM-3 has yielded five oil and gas fields: Bunga Kekwa,
Bunga Raya, Bunga Pakma, Bunga Seroja, and Bunga
Orkid.
But the geology is complex, and the partners have
identified more than 100 discreet reservoirs, which
has further complicated development plans. |
