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Friday, July 15, 2011

Chim Sao Set to Premier

- Chim Sao Set to Premier

Friday, July 15, 2011
Rigzone Staff
by Jaime Kammerzell

Premier Oil Vietnam BV is set to bring the Chim Sao field online in September 2011.

Premier Oil drilled the Blackbird 2E-CS-1X discovery well (now known as Chim Sao) in 115 m of water in November 2006. Premier found more than 70 m of net pay in four oil-bearing intervals in the Middle Dua target, 4,058 m below sea level. The well is in a tilted fault block in the Nam Con Son Basin, 21 km southwest of Premier Oil's Dua field.

In May 2008, the partners drilled the (renamed) Chim Sao North appraisal well. They performed a drill stem test and the well flowed oil at 1,650 b/d and 1.4 MMcf/d on a 40/64-in. choke. The second zone test showed a rate of 2,680 b/d and 2.1 MMscf/d on a 48/64th in. choke. The well was sidetracked down-dip to delineate the oil/water contact and the extent of the hydrocorabon-bearing reservoir.

Premier's partners in the field currently include Santos with 31.857% interest and PVEP with 15% interest. Santos estimates the field contains 48 MMboe of proved and probable reserves and expects 25,000 b/d plateau production from the field.

Santos became a partner in Block 12E in April 2006 when Premier split its 75% share in the block along with partner Delek Energy, which held 25% interest at the time. Premier became operator of Blocks 12E and 12W in September 2004 when it purchased 75% of the block from Delek Energy.

Premier Oil then acquired additional equity in Block 12 in July 2009 when it purchased Delek's 25% interest for $72 million in cash. Separately PetroVietnam Exploration and Production exercised its back-in right to acquire a 15% interest in the PSC.

Shortly after becoming operator, Premier launched a 2D and 3D seismic acquisition, processing and interpretation program, which identified the Dua and Blackbird prospects. The operator then drilled the Blackbird well using Diamond Offshore's Ocean General semisubmersible in May 2006.

Chim Sao Set to Premier
Diamond Offshore's Ocean General semisubmersible

Chim Sao Set to Premier

Field Development

The Vietnamese authorities approved Premier Oil's Draft Reserves Assessment Report and Field Development Plan in April 2008.

The partners then contracted the Wilboss jackup for a three- to four-well exploration campaign in the first half of 2009 to further appraise the area and to see if there are additional oil discoveries that could be tied-back to the Chim Sao development.

Chim Sao Set to Premier
The WilBoss is an independent leg cantilever jackup rig. Keppel Fels built the Awilco rig in Singapore in 2007. It can drill in up to 400 ft of water and down to 30,000 ft.

The first phase of development planned to produce oil and associated gas through two unmanned, minimum facility wellhead platforms tied back to the Nexus 1 FPSO. The FPSO was built to process 25,000-30,000 b/d and offload to shuttle tankers. Gas would be exported via spur and then through PetroVietnam's Nam Con gas pipeline.

BW Offshore submitted a bid to provide both the FPSO and the EPCI contract for the surface facilities. On March 28, 2009, BW Offshore reported it was working on a private placement for the Nexus 1 FPSO. The lease agreement and the EPCI contract were dependent on BW securing funding for the vessel.

In late 2009, however, FPSO lease arrangements were made with a joint venture of Ezra Holdings, EOC, PetroVietnam, PV Keez, and KSI Production. This JV was the first oversees company to secure an offshore Vietnam loan to finance an FPSOs conversion.

The field partners agreed to contract the Lewek EMAS, a 168,000 deadweight ton Suemax oil tanker from EOC Ltd. in late 2009. The FPSO Lewek EMAS is one of Vietnam's largest FPSOs. Keppel Shipyard converted the tanker on behalf of owner PV Keez Pte. Ltd. EMAS Production will manage and operate the FPSO, which Premier Oil charted for the development of the Chim Sáo field off southern Vietnam for six years, with a further option to extend the charter by another six years. The FPSO charter contract is worth approximately $1 billion.

In January 2010, PetroVietnam Transportation (PVTrans) and EOCP then agreed to form a JV to provide operations and maintenance services for the FPSO for 12 years. And in February 2010, EOCP, Ezra Holdings, Keppel and PVTrans agreed to co-own the FPSO.

The FPSO was christened at Singapore's Keppel shipyard on April 15, 2011. EOC said the FPSO can produce up to 50,000 b/d, store up to 680,000 bbl of oil and process around 89 MMsfc/d of gas. EOC and Petrovietnam Transportation Corp. will operate and maintain the vessel under a 50/50 joint venture.

Other contracts the Chim Sao partners awarded include the engineering, procurement, construction and installation (EPCI) contract for the wellhead platform, infield flowlines, and gas export pipelines to PetroVietnam Technical Services (PTSC) in 2008. The platform jacket was installed in March 2010.

In December 2009, the partners awarded a contract to Saipem to install the wellhead platform. Saipem also provided engineering for infield pipelines and the installation of subsea pipelines, umbilicals, and PLEMs. Also in December 2009, EOCP awarded a contract to DPS Bristol to provide detailed design engineering services for CSU, water injection, and flare knock-out drum modules for the FPSO.

Viet Nam Rigs

Premier currently has the ENSCO 107 jackup contracted to drill wells on the Chim Sao field through May 15, 2012, at $110,000/day.

Chim Sao Set to Premier

Of the 14 other rigs off Vietnam, one is under construction, two are ready stacked, and 11 are drilling.

PV Drilling, Seadrill, and VietSovPetro each have three jackups, Vantage Energy has two rigs, and ENSCO (previously mentioned), Maersk, Petrovietnam, and Transocean each have one rig contracted off Vietnam.

Operator VietSovPetro has six rigs drilling. Aside from Premier, other operators present off Vietnam include Hoang Long, BHP Billiton, Cuu Long JOC, Salamander Energy, and Phu Quy.

Vantage Energy's Aquamarine Driller jackup is currently the highest contracted rig off Vietnam. The jackup is contracted to Salamander Energy to drill block 101/100-04 CB-1X on the Cat Ba field through Aug. 15, 2011 at a rate of $135,000/day.

Chim Sao Set to Premier
Vantage Energy's Aquamarine Driller

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