InterMoor Clinches Mooring System Offshore Vietnam

- InterMoor Clinches Mooring System Offshore Vietnam

Thursday, September 01, 2011
Aceton Group Ltd.

InterMoor, an Acteon company, was awarded a prelay mooring system by Petro Vietnam Technical Services (PTSC) for a project offshore Vietnam, announced InterMoor President Tom Fulton.

The prelaid mooring spreads were installed in July for the two offshore Vietnam locations. The moorings for each location consisted of eight conventional lines with insert wire, grounded chain and eight 12T Stevpris NG Anchors. In total, InterMoor successfully prelaid 29 anchors including 13 piggybacks in less than two weeks on both locations.

InterMoor worked in cooperation with a local Vietnam company, Thiennam Offshore Services, who chartered DOF Subsea's vessel, the Skandi Hercules, to perform the mooring installations.

The PVD 5 Tender-assisted Drilling Rig will arrive on location in October 2011 and be moored to the prelaid spread. Water depths at the locations range from 118m (387 ft.) to 135m (443 ft.).

"This is our first project offshore Vietnam and we had the full support of PTSC for the entire project duration," said Rick Luck, General Manager for InterMoor's Singapore office. "This project offers InterMoor the opportunity to further expand in this region, while continuing its focus on international growth."

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Sub-Commercial Discovery Disappoints Salamander Offshore Vietnam

- Sub-Commercial Discovery Disappoints Salamander Offshore Vietnam

Thursday, September 01, 2011
Salamander Energy plc

Salamander announced the completion of the Cat Ba-1X ("101-CB-1X") exploration well in Block 101-100/04, offshore northern Vietnam. Block 101-100/04 was the subject of a farm out as announced on May 31, 2011.

The 101-CB-1X well was drilled to a total depth of 1,724 meters. The well encountered 38 meters of net hydrocarbon pay in Tertiary clastics, the secondary objective of the well. The pay section comprises a series of gas-bearing sandstones underlain by an oil-bearing reservoir. A full suite of wire-line logs and pressure data were recorded over the reservoir sections and samples of oil and gas were recovered.

These data show that the Tertiary reservoirs are of good quality, however pressure data and seismic mapping indicates the in-place resource volumes encountered by the well are probably below levels needed for commercial development.

No oil shows were observed and only low levels of gas were recorded while drilling the primary objective, the Palaeozoic 'buried hills' play. Subsequent wire-line logging did not reveal any zones of interest. The Cat Ba-1X well has subsequently been plugged and abandoned as a sub-commercial discovery.

James Menzies, Chief Executive, Salamander Energy, said, "While a sub-commercial find is disappointing, we have an active drilling program into 2012 which sees a mix of exploration, appraisal and development around our three primary areas of focus. These are proven regional plays, where we believe we can create significant value."

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Salamander Spins Bit Offshore Vietnam

- Salamander Spins Bit Offshore Vietnam

Wednesday, August 03, 2011
Salamander Energy plc

Salamander announced the spud of the Cat Ba-1X ("101-CB-1X") exploration well in Block 101-100/04, offshore northern Vietnam.

The 101-CB-1X well will be drilled to a depth of approximately 1,900 meters. The primary objective is a Palaeozoic carbonate, (buried hill) structure with secondary objectives in the overlying Tertiary clastic section. The mean gross pre-drill estimate of prospective recoverable resource is approximately 100 MMbo. The well will be drilled by the Aquamarine Driller jack-up rig in a water depth of 49 meters. It is expected to take approximately 25 days to complete on a dry hole basis.

Salamander holds a 30% operated interest in Block 101-100/04, subject to final government approval of the farm-out of 20% interest to JX-Nippon Oil & Gas Exploration Corporation announced in May 2011.

James Menzies, Chief Executive of Salamander, said, "The Cat Ba prospect is an analogue to the neighboring Ham Rong Oil field that was declared commercial in 2010, both located in the Hai Phong sub-basin. We have reduced our financial exposure to the 101-CB-1X well through farm down, but remain highly leveraged to the upside in the event of success."

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PetroVietnam Mulls Buying ConocoPhillips Offshore Vietnam Assets

- PetroVietnam Mulls Buying ConocoPhillips Offshore Vietnam Assets

Friday, July 08, 2011
Dow Jones Newswires
HANOI
by Vu Trong Khanh

State-run Vietnam Oil and Gas Group, or PetroVietnam and its partners are considering buying ConocoPhillips' stakes in three oil and gas projects off the coast of Vietnam, PetroVietnam said.

"The reason why the firm [ConocoPhillips] is selling the stakes might be it is restructuring itself," PetroVietnam Director General Phung Dinh Thuc said in a statement on the website of PV Oil, a PetroVietnam unit. He didn't identify the partners.

ConocoPhillips' assets in Vietnam are valued at up to $1.5 billion, PV Oil said in the statement.

The remarks come at a time when ConocoPhillips is expected to give investors an update on its three-year restructuring plan presented in late 2009 and expanded this year. The plan includes selling up to $17 billion in assets. Conoco Senior Vice President of Planning and Strategy Alan Hirshberg has said in a May the company was looking at leaving countries where it has a small presence.

ConocoPhillips, the third-largest U.S. oil company by market value after ExxonMobil and Chevron, has a 23.3% stake in a group of five fields in Block 15-1, where oil production started in 2003, a 36% stake in Rang Dong Field in Block 15-2 in the Cuu Long basin and a 16.3% stake in the Nam Con Son Gas Pipeline project, it said.

ConocoPhillips spokesman John McLemore declined to comment saying the company's policy is not to discuss market speculation.

As host country, Vietnam has priority rights for any such purchase, Thuc said.

These oil fields are located 180 kilometers southeast of Ho Chi Minh City, in undisputed areas close to Vietnam's big Bach Ho field.

Thuc was quoted in the statement as saying oil production at the fields might have entered a "complicated stage," in an apparent reference to technical--rather than political--complexities.

Thuc referred to an increasingly bitter dispute between Vietnam and China over sovereignty of the South China Sea, or East Sea as it is known in Vietnam, but didn't directly link the dispute to the possible acquisition.

"PetroVietnam reiterates that Vietnam's sovereignty has been acknowledged by the international community, and therefore, it will not change its exploration and production plan in the East Sea," Thuc was quoted as saying.

The Vietnam-China sovereignty row heated up sharply recently when Hanoi accused Chinese vessels of harassing fisherman and cutting the cables of a vessel doing seismic oil exploration work in late May.

"The group will continue to use its Binh Minh 02 for seismic surveys in Vietnam's continental shelf, and will coordinate with related ministries and agencies to protect the operations of the ship," according to the statement. Binh Minh 02 is name of the ship which had its seismic cables cut.

"Our current conduct in the East Sea is being calm, to both contribute to the country's economy and to actively protect the nation's sovereignty in the sea," Thuc said.

Copyright (c) 2011 Dow Jones & Company, Inc.

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Diamond Offshore to Move Rig from US GOM to Vietnam

- Diamond Offshore to Move Rig from US GOM to Vietnam

Wednesday, June 15, 2011
Dow Jones Newswires
HOUSTON
by Ryan Dezember

Diamond Offshore said that it will move one of its deep-water rigs from the U.S. Gulf of Mexico later this year to drill wells off Vietnam for BP.

When the Ocean Monarch is moved, it will be the third Diamond rig to leave the Gulf of Mexico since BP's deadly Deepwater Horizon explosion in April and the subsequent shut-down of deep-water drilling in U.S. waters.

Diamond said in a fleet status report that the Ocean Monarch should conclude its current contract with Marathon, for which the driller earned about $290,000 per day, in mid-August.

The rig, capable of drilling in up to 10,000 feet of water, is scheduled to arrive in Vietnam in November to drill two wells for the British oil giant with options to drill two more. That contract carries a day rate of about $340,000, Diamond said.

The Ocean Monarch's move did not come as a surprise as Diamond has talked about its intentions with analysts, said Simmons & Co. analyst Pearce Hammond, who said the day rate is "in line" with expectations.

The Ocean Monarch, which was featured in the 1997 Bruce Willis movie "Armageddon," was stripped down and rebuilt in 2006 after it was acquired by Diamond.

It was drilling for Anadarko when U.S. regulators shut down Gulf operations. Anadarko sued Diamond in a U.S. court in Houston, claiming that the drilling moratorium triggered cancellation clauses in its contract.

Anadarko and Diamond last month decided to dismiss claims against one another as the companies entered into a pair of long-term drilling contracts for rigs that are now under construction.

Copyright (c) 2011 Dow Jones & Company, Inc.

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Technip Bags BP Umbilical Contract Offshore Vietnam

- Technip Bags BP Umbilical Contract Offshore Vietnam

Wednesday, June 15, 2011
Technip

Technip announced that its wholly-owned subsidiary DUCO Ltd. has been awarded a contract by BP Exploration Operating Company Limitedworth approximately €15 million for the Lan Do field development in Vietnam. This field is located 320 kilometers south of Ho Chi Minh City, at a water depth of 120-180 meters.

The contract includes the engineering, project management and fabrication of a main umbilical and an infield umbilical. The umbilicals will utilize a hybrid technology developed by DUCO, which uses steel tube and thermoplastic hose fluid conduits for hydraulic control and chemical injection services. They will be delivered in the first half of 2012.

The project will be executed in Technip's umbilical facilities in Newcastle, UK and in its new state of the art flexible pipe and umbilical manufacturing facility, Asiaflex Products, located in Johor State, Malaysia.

The award follows the recent successful delivery of the umbilical systems for BP's Skarv development in Norway and builds on Technip's track record in umbilical supply to BP stretching back over 25 years.

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Salamander to Farm-Out Stake Offshore Vietnam

- Salamander to Farm-Out Stake Offshore Vietnam

Tuesday, May 31, 2011
Salamander Energy plc
by SubseaIQ

Salamander has executed an agreement to farm-out a 20% interest in Block 101-100/04, Offshore Northern Vietnam to JX Nippon Oil & Gas Exploration Corporation ("JX-NOEX"). Block 101-100/04 is operated by Salamander and contains the Cat Ba oil prospect that will be tested with the CB-1X well in Q3 2011.

JX-NOEX will earn a 20% working interest in Block 101-100/04 from Salamander through funding a promoted cost of the CB-1X well.

The Cat Ba oil prospect has oil potential in both basement and in the overlying clastics, and has a mean prospective resource of c. 100 MMbo. It is an analogue to the neighboring Ham Rong oil field, declared commercial by Petronas in 2010. The prospect will be tested by the CB-1X exploration well, to be drilled in July 2011, using the Aquamarine Driller jack-up drilling unit.

Completion of the transaction is subject to host government approval.

Commenting on the transaction, James Menzies, CEO of Salamander said, "Bringing in a partner like JX-NOEX demonstrates the industry interest in this emerging oil play and highlights the attractions of the Cat Ba prospect. This transaction reduces Salamander's financial exposure to the drilling of the CB-1X well, while we remain highly leveraged to the upside in the event of success at Cat Ba."

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Salamander Lines Up Vantage Rig Offshore Vietnam

- Salamander Lines Up Vantage Rig Offshore Vietnam

Friday, May 20, 2011
Salamander Energy plc

Salamander issued the following Interim Management Statement for the period from January 1, 2011 to May 18, 2011.

Highlights

• 2011 average production forecast maintained at 22-23,000 boepd
• Active E&A campaign during the period as part of a 13 well 2011 program
  • Drilling on the Dao Raung structure found significant gas column, follow-up drilling is underway
  • Technical analysis of Angklung-1 ongoing in advance of follow-up well in 4Q
  • 2D and 3D Seismic surveys completed on SE Sangatta confirming continuation of Angklung trend, in advance of well in 4Q
• Producing assets performance in line with expectations, development drilling underway at Bualuang oil field
• Reserves upgrade at Bualuang field: Ultimately recoverable proved & probable reserves increased 7 MMbo to 33.5 MMbo
• Contract signed for construction of Bualuang Bravo Platform
• Completion of new debt facility imminent

Exploration and Appraisal

Thailand

The Group completed one appraisal well during the period, the Dao Ruang-2 well in block L15/50, Northeast Thailand, while progressing its analysis of a follow up location on the Dao Ruang structure ahead of drilling during the current year. The well intersected a number of the targeted fracture zones with associated gas shows. Gas was seen all the way to TD, without any water, demonstrating a significant gas column in the Dao Ruang structure. An openhole DST was undertaken but only sub-commercial flow rates were recorded indicating a low permeability formation with a limited open, connected fracture network at the Dao Ruang-2 location. The Dao Ruang-3 well spudded at the end of April and is targeting an independent fault network in the Dao Ruang structure where it is hoped the well will encounter an open fracture network.

Offshore in block B8/38 in the the Gulf of Thailand, development drilling on the Bualuang platform is underway and the East Terrace prospect will be tested as part of this program. Exploration drilling elsewhere in the B8/38 block will follow the completion of development drilling.

Indonesia

The Group has been continuing its technical analysis of the Angklung-1 discovery well and the existing 3D seismic data in order to better understand and map the play systems in the Northern Kutei area. This analysis will assist in identifying the location of the follow up wells in the Bontang PSC planned for 4Q 2011, which will be aimed at appraising the gas play and exploring the oil play.

In the SE Sangatta PSC, adjacent to the Bontang PSC, the Group completed 2D and 3D seismic surveys during 1Q. The results of these surveys are now being interpreted, with early indications of a number of prospects on trend with the Angklung discovery, confirming the continuation of the prospective trend into the SE Sangatta license. A well on this license is planned for 4Q 2011.

In the Tarakan Basin the HPS-1 land rig has commenced mobilization to the South Sebuku-2 well site and is expected to spud during May 2011.

Vietnam

The Aquamarine Driller jackup rig has been contracted to drill the Cat Ba prospect, offshore North Vietnam. This well is expected to spud in July 2011.

Production and Development

The Group's producing assets have performed broadly to plan. During 1Q 2011 production averaged 19,434 bopd. The Group reiterates its average production forecast for 2011 of 22-23,000 bopd. The current development drilling program on the Bualuang oil field, Gulf of Thailand, incorporating six development wells, will drive increased volumes in the second half of the year.
During the first quarter the Group announced a reserves upgrade on the Bualuang field adding a further 7 MMbo of proved and probable (2P) reserves which take the ultimately recoverable 2P reserves on the Bualuang field to 33.5 MMbo. It has also awarded the contract for the Bravo Wellhead Platform, to be delivered and installed in mid-2012. This will be a 16 slot platform and further development drilling from the Bravo platform in H2 2012 will see production from the Bualuang field increase to 15,000 bopd in 2013.
A Gas Sales Agreement for the Kerendan gas field, Bangkanai PSC, Onshore Kalimantan has been agreed and is awaiting signature. This will see the commercialization of circa 135 Bcf of gas at a price in excess of $4.50 per Mcf.

Balance Sheet

The Group is in an advanced stage of negotiation and expects imminently to announce agreement on a new debt facility. It will be a $325 million senior and junior reserves based lending facility that will replace the existing senior, junior and acquisition bridge facilities in addition to providing additional liquidity.

At March 31, 2011, total Group debt, including the $100 million convertible bond, was $273 million, total available funds were $103 million, and net debt (including the convertible bond) was $170 million.

Directorate Change

As announced on 3 May Nick Cooper, Chief Financial Officer, will be leaving the Company to join Ophir Energy as Chief Executive Officer with effect from 31st May. The Company has begun a search for a successor and anticipates an orderly transition. A further announcement will be made in due course.

Outlook

Through a combination of higher than expected commodity prices, a growing production base and the expected refinancing of its debt facility the Group's solid financial position has been further strengthened. Operationally the focus is on delivering the 2011 exploration and appraisal program that combines a mixture of low risk, high value wells with higher impact drilling in both Vietnam and Indonesia with the Angklung follow up wells in Bontang and SE Sangatta PSCs.

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GE O&G Selected to Supply HPHT Equipment Offshore Vietnam

- GE O&G Selected to Supply HPHT Equipment Offshore Vietnam

GE O&G's drilling & production business has been selected to supply high-pressure, high-temperature (HPHT) equipment to Bien Dong Petroleum Operating Company, a subsidiary of the state-run Vietnam Oil and Gas Group (PetroVietnam), for the development of gas fields, offshore Vietnam.

Under a contract of approximately $30 million, GE will provide 16 sets of HPHT surface wellheads and subsea production trees, along with associated equipment and services, for deployment in phase one of the development campaign for blocks 05.2 and 05.3 of the Hai Thach and Moc Tinh gas fields. This marks the largest single contract for surface wellheads and subsea trees in Vietnam by any equipment manufacturer.

Sam Aquillano, vice president—drilling & production, GE Oil & Gas said, "We are honored to supply high-tech equipment to Bien Dong Petroleum Operating Company to support Vietnam's offshore drilling and production operations. This is the largest single contract for surface wellhead and subsea trees in Vietnam, and GE hopes to build on this contract award by continuing to support Vietnam's burgeoning oil and gas industry with high-tech, high-performance equipment and services from across our integrated oil and gas portfolio."

The high-tech equipment, with the capability to operate at 350°F and 15,000 psi, is a first for Vietnam and reinforces GE's position as a leading supplier of surface HPHT and ultra HPHT wellheads and subsea trees in Asia. The contract follows GE's recent agreement with Total Malaysia to supply ultra HPHT equipment (450° F and 15,000 psi).

GE Oil & Gas has a strong local presence in Vietnam for turbomachinery and drilling and production equipment and services support. Last year, GE signed a memorandum of understanding (MOU) with PetroVietnam, paving the way for the future supply of advanced oil and gas equipment, services and spare parts to optimize the total life-cycle value of key oil and gas projects in Vietnam.

This contract further affirms GE's position as a significant wellhead and subsea production tree supplier for surface HPHT and ultra HPHT equipment in Asia and follows a recent award with Total Malaysia for ultra HPHT equipment (450°F and 15,000 psi). GE Oil & Gas has a local presence in Hanoi for turbomachinery equipment and services and in Ho Chi Minh City for VetcoGray subsea equipment and services. GE Oil & Gas also provides advanced technology equipment and services to other high-profile projects in Vietnam, such as the BP Pipeline, Dung Quat Refinery, Phu My Refinery, Camau Fertilizer and Vietsovpetro. Last year, GE Oil & Gas successfully signed an MOU with PetroVietnam outlining the principles and basis of long-term collaboration regarding the supply of advanced oil and gas equipment, services and spare parts to optimize the total life-cycle value of key oil and gas projects.

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Lukoil Enters Offshore Project in Vietnam

Lukoil Enters Offshore Project in Vietnam

Friday, April 29, 2011
Dow Jones Newswires
by Alexander Kolyandr

Lukoil has acquired 50% of the Vietnam offshore Hanoi Trough-02 oil project from privately-owned Quad Energy S.A., which still keep the other half of the project.

The production share agreement project offshore Vietnam at the South China Sea will be operated by Lukoil Overseas, a Lukoil subsidiary.

The field's resource is estimated at 180 millions metric tons of oil equivalent, Lukoil said.

Premier to Plug, Abandon Well at Vietnam Block

Premier to Plug, Abandon Well at Vietnam Block

Thursday, April 28, 2011
Pan Pacific Petroleum NL

Premier Oil Vietnam South B.V. ("Premier"), the operator of the Block 07/03 Production Sharing Contract, has advised that the CRD-2X-ST appraisal well operations have been successfully completed and that the CRD-2X well will now be plugged and abandoned as planned.

The CRD-2X appraisal well was spudded by the semi-submersible drilling rig the Ocean General on Thursday, February 10. The well was planned to evaluate the oil and gas discovered in multiple stacked Miocene and Oligocene reservoir sands by CRD-1X in 2009 with the aim of reducing uncertainty in whether the CRD (Cá Rong Ðo) structure contains sufficient volumes to support a potential development. CRD-1X tested two zones in the Miocene sands which flowed oil at a combined rate of 3,265.4 BOPD plus 8.1 MMSCFD, through a 48/64" choke, with no water. However, it was not possible to flow test the Oligocene sands at that time.

CRD-2X reached a total depth of 3,785 m BRT on March 10, and following evaluation of the section by logging, drill stem tests of two
reservoir zones in the Oligocene section were conducted. The first zone tested flowed gas and condensate at rates of 9.7 MMSCFD and 870 BOPD respectively through a 40/64" choke. The second zone tested flowed gas and condensate at rates of 17 MMSCFD and 1730 BOPD respectively through a 56/64" choke. The total net condensate/gas pay in this well was 72m, a significant increase compared with the 17 m of net pay penetrated in the Oligocene section in the up dip CRD-1X well.

CRD-2X was subsequently sidetracked to further evaluate the distribution of hydrocarbons in the Miocene sands. This sidetrack well CRD-2X-ST reached its planned total depth of 3,340 m BRT in the Miocene section and intersected 18.3m of net oil pay in the Miocene sands. This compares with 34.4m of net oil pay intersected in the Miocene section in the up dip CRD-1X well, and 3.8m in the down dip CRD-2X well.

These well results, including strong flows from the Oligocene sands have provided important information that will assist in the assessment of the resource potential of the CRD structure. The Operator will now undertake further studies to determine the feasibility of a commercial development.

Partners in the Vietnam Block 07/03 are:

• Pan Pacific Petroleum (Vietnam) Pty Ltd 5% (a wholly owned subsidiary of Pan Pacific Petroleum NL)
• Premier Oil Vietnam South B.V. (Operator) 30%
• Vietnam American Exploration Company, LLC. 40% (a wholly owned subsidiary of Pitkin Petroleum Plc)
• PearlOil (Ophiolite) Ltd. 15%
• PetroVietnam Exploration and Production Corporation Ltd 10%

Exxonmobil to Start Exploration Offshore Vietnam Next Month

Exxonmobil to Start Exploration Offshore Vietnam Next Month

Thursday, March 31, 2011
Asia Pulse Pte. Ltd.

ExxoMobil will start its first exploratory drilling off the central coast of Vietnam late next month.

The decision was agreed upon at a city on March 29 between leaders of the People's Committee of Da Nang City and representatives from ExxonMobil Exploration and Production Vietnam Ltd.

The drilling will be conducted at block 119 on the continental shell offshore Quang Ngai Province and Da Nang City. Phung Tan Viet, Vice chairman of the Da Nang People's Committee, asked the company to strictly guarantee technical requirements to avoid environmental pollution. The two sides also discussed plans to ensure safety during oil-rigs construction.

Viet also ordered the city's Department of Agriculture and Rural Development to inform fishermen not to use the exploration area during the 40 days of drilling.

According to reports from state-owned Vietnam Oil and Gas Group PetroVietnam, Vietnam's crude oil reserve in 2010 was estimated at 4.4 billion barrels. The crude oil and gas exploration output in 2010 reached 15.1 million metric tonnes and 9.4 billion metric tonnes, respectively.