South Pacific: Zone of Cooperation
August 2000 Vol. 221 No. 8 International Outlook SOUTH PACIFIC Zone Of Cooperation In the area between Timor Island and northern Australia, NW of Darwin, Ph
SOUTH PACIFICZone Of CooperationIn the area between Timor Island and northern Australia, NW of Darwin, Phillips-operated Elang, Kakatua and Kakatua North oil fields were producing more than 20,000 bopd from four subsea wells, to the FPSO Modec Venture 1, after recent well work. And the areas second project, the Phillips JVs Bayu-Undan complex, has been given government approval. Platts Oilgram of February 29 notes that the Timor Gap Joint Authority administering ZOCA is presently a joint body comprising the Australian government and the UN Transitional Administration in East Timor (which has replaced Indonesia). For licensing in 1999, Phillips acquired BHPs interests in ZOCA 91-12, including Elang / Kakatua / Kakatua North; it also acquired BHPs 33.3% interests in Shell-operated 95-19 and 96-20, plus BHPs 8.33% and 33.3%, respectively, in Woodside-operated NT/RL2 and NT/P55. Phillips announced, in early 2000, the restructure of Indo-Pacific / Trans-Orients assets to give it 66% of ZOCA 96-15 (Coleraine oil prospect). By mid-year, Statoil had withdrawn from Shell-operated (25%) 95-18, increasing British Borneo, ExxonMobil and Nippon Mitsubishis interests to 34%, 25% and 16%, respectively. And Woodside farmed into 94-07 to give it 10% of the Shell-operated permit south of 95-19 with its Troubador / Sunset gas prospects. At mid-year, the Joint Authority had released three new areas for application in ZOCA 00-21, 22 and 23.
Wood Mackenzie reported one important exploration well in 1999, Woodsides Jura 1 ST1, a dry hole drilled by the Ocean Epoch semi in 264-m water. This was the fourth well drilled on 95-19 (Sunset gas / condensate field); problems caused it to be sidetracked. There is only one ongoing development in ZOCA, the Phillips-operated (42%) subsea Elang, Kakatua / Kakatua North complex. Brought onstream in 1998, the wells have been rapidly declining. A sidetrack to Elang 1 and remedial work on Elang 2, using the Ocean Bounty semi, has increased production. Other partners are Santos (21.4%), Inpex Sahul (21.2%) and Petroz Group (4.9%). The largest development under consideration is the Phillips-operated (50.3%) JVs Bayu-Undan discovery. Partners are Santos (11.l8%), Inpex (11.7%), Kerr McGee (11.2%), Petroz (8.3%) and British Borneo (6.7%). The multi-$billion project would likely involve two stages. First, an offshore liquids-stripping plant to process wet gas, store and export condensate / LPG via an FSO vessel, and reinject dry gas. Stage 2 would involve LNG and/or domestic (northern Australia) gas sales. Various reports indicate negotiations have started for the drilling / production / processing platform and topsides, plus the FSO and its moorings. The Bayu-Undan complex straddles permits 91-12 and -13. Initial output has been estimated at about 70,000 bpd condensate and 43,000 bpd LPG, with first liquids by 2003 and full production by 2004 (Platts). Reserves could be 400 MMbbl liquids and 3.4 Tcf gas. Approval of Stage 1 by JV members and go-ahead from the Joint Authority gave the project the necessary impetus. |