7 new oil zones found offshore Malaysia/Vietnam
New Straits Times (Malaysia), 11 May
PETROLIAM Nasional Bhd (Petronas), Lundin Oil and PetroVietnam Exploration and Production (PetroVietnam E&P) have found oil again at Block PM-3 Commercial Arrangement Area (CAA), offshore the Malaysia/Vietnam waters.
According to Lundin Oil in its website, the East Bunga Raya-1 well encountered seven new oil zones and two low carbon dioxide gas reservoirs.
It said the main oil zone was production tested and flowed at a maximum rate of 5,500 barrels per day (bpd).
Total net pay in the well is 168ft of oil and 328ft of gas.
The additional hydrocarbon reserves delineated by this well can be developed using excess capacity from the current planned Phase 2 infrastructure with minor processing and production de-bottlenecking refinements.
A mid-year re-assessment of the third party certified reserves is currently underway.
Lundin Oil president Ian Lundin was quoted on the website as saying that the company is very excited about the results of this well and the major impact it will have on the value of this project.
"As there will be only minor additional capital requirements, the additional oil revenues will add directly to the project cash flow and profitability," he said.
Lundin Malaysia Ltd holds a 41.44 per cent interest in the PM-3 CAA and operates on behalf of its partners, Petronas Carigali Overseas Sdn Bhd (46.06 per cent) and PetroVietnam E&P (12.5 per cent).
The Block PM-3 CAA is located between Malaysia and Vietnam in the South China Sea.
During the 1990's, Lundin Oil and its partners drilled 20 wells and discovered seven oil and gas fields within the Block boundaries.
Production commenced in 1997, with an Early Production System (Phase 1) and full development of the reserves is now proceeding under Phase 2 of the development project.
The Block is in a strategic location with good access to the growing gas markets of both Malaysia and Vietnam.
Initially, all the gas (250m cu ft per day) will be sent to Peninsular Malaysia.
The project included the drilling of two new development wells and the workover of four existing wells.
The two new development wells, BK-A8 and BK-A9, tested 5,880bpd and 4,375bpd, respectively.
The PM-3 CAA production sharing contract was signed with Malaysian Government on February 16 1989 by Lundin Oil predecessor, International Petroleum Corp.
The block was converted to a commercial arrangement areas in June 1992 in order to resolve border dispute between Malaysia and Vietnam.
Negotiations have recently resulted in the signing of gas sales agreement and a utilisation agreement, which paved the way for full development of the hydrocarbon resources.
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