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New drilling to yield first results by June, says Premier Oil
Premier Oil Plc expects the first results from a well off Vietnam’s coast by next month, as exploration begins in an area freed for drilling by an agreement over sea boundaries with Indonesia.
Drilling started last week in Block 07/03, the London-based company said in a statement. Partners in the field include Vietnam American Exploration Co., a unit of Abu Dhabi-based Mubadala Development Co. and Pan Pacific Petroleum NL, which this week bought a 15 percent stake in the block from Premier.
Vietnam and Indonesia signed an accord in 2003 delineating the continental shelf boundary between the two countries, concluding a quarter-century of negotiations. The start of drilling in Block 07/03 broadens potential areas for Vietnam to boost exploration, as the country attempts to reverse a four-year drop in production.
“After the first well, we’ll take a break and then drill a second one in the second half of the year, and then based on the results of those, decide where to go from there,” Phil MacLaurin, Vietnam country manager for Premier, said in a telephone interview Friday.
Block 07/03 has similarities to recent discoveries Premier has made in the Block 12W offshore area, MacLaurin said. The company is moving toward development of the Chim Sao and Dua fields, both of which are located in Block 12W.
A fresh look
“Block 07/03 is an area that hasn’t been explored since the 1970s, due to the previous territorial uncertainty with Indonesia,” MacLaurin said. “It’s quite an opportunity to take a fresh look at a block with some extensive structures. We see this largely as a potential oil field, not a gas field.”
Pan Pacific Petroleum bought into the 4,915-square-kilometer (1,900- square-mile) field partly because of its proximity to the Chim Sao and Dua oil fields and hopes for “an extension of this successful play concept,” the Sydney-based company said in a statement to the Australian stock exchange this week.
“Premier has carried out a very thorough evaluation, and the prospects identified are very attractive,” Pan Pacific Chief Executive Tom Prudence said in a telephone interview during a visit to Vietnam this week. “We’ve been looking for selected exploration areas in proven basins, and this fits the profile.”
Pan Pacific, which already has a stake in New Zealand’s Tui oil field, would consider buying into other Vietnamese areas, Prudence said.
thanhnien, Bloomberg
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