CNOOC to evaluate offshore oil finds

Chinese oil firm CNOOC said on Tuesday it would carry out delineation drillings to further evaluate the potential of thee oil finds it made in South East Sumatra PSC (SES) offshore West Java, with a view to bring the discoveries into production in 2010.

According to CNOOC?s SES Exploration Manager Nusatriyo Guritno, Manik, Taskia and Delima exploration wells were drilled in 2005 and early 2006 at the depth of around 9,000 feet and declared as discoveries after being tested by Measured During Testing (MDT) method. Under the

?CNOOC will conduct 3D seismic survey on next year to enable to determine location to conduct appraisal drillings, which, hopefully, will also be carried out next year,? he said.

He said if the appraisal wells results were proven to be economically viable, the discoveries could be brought into production in 2010.

He also said CNOOC is currently planning to develop its marginal field called Savitri, which has the potential to produce 3,000 barrels per day. He said CNOOC is asking for incentives from the government to make the field?s development commercially viable.

SES block is currently the largest offshore oil producer with production of 56,000 barrels of oil per day. Nusatriyo said CNOOC is trying to arrest the block?s declining production trend as the fields are already matured.

CNOOC Ltd. holds 65.5% interest of Southeast Sumatra PSC and acts as the Operator. The PSC partners include Inpex Sumatra Ltd., KNOC Sumatra Ltd., Orchard Energy Sumatra BV, Fortuna Resources (Sunda) Ltd., Talisman UK (Southeast Sumatra) Ltd. and Talisman Resources (Bahamas) Ltd. (alex)