Mubadala to drill exploration well in Gulf of Thailand in May
Mubadala Petroleum is planning to drill an exploration well in the G1/48 Concession containing the Manora oil development, located in the Northern Gulf of Thailand, next month.
Mubadala made plans to drill the exploration well in the concession after it started drilling the first of two development wells on the Manora field in March.
The Sri Trang-1 exploration well is located in the Reservation Area of the G1/48 Concession approximately eighteen kilometres north northeast of the Manora oil development.
Mubadala is the operator of the G1/48 Reservation Area concession and holds 60% interest, and its partners are Tap Oil with 30%, and Northern Gulf Petroleum with 10% interest.
According to Tap Oil, Mubadala has advised that the Atwood Orca jack-up rig is currently expected to start drilling Sri Trang-1 in mid-May 2016.
Tap reported that its board has approved the company’s participation in the Sri Trang-1 exploration well as its participation in this well was not confirmed when the drilling of two development wells started.
The exploration well objective is to evaluate the primary Middle Miocene lacustrine sands target with secondary targets of Late Miocene fluvial sands. The Middle Miocene lacustrine sands target is the main reservoir level at the Manora oil field.
A valid test of the primary objective Middle Miocene sands is essential as it will validate the hydrocarbon prospectivity of the Northern Kra basin and de-risk dependent prospects immediately to the West of Sri Trang-1, Tap Oil said.
The well is being drilled in shallow water and will be drilled to approximately 2,590 metres measured depth (2,485 metres true vertical depth). The well is expected to take 10 days on a trouble free dry hole basis, Tap added.
Further, the company added, the outcome of the well will determine any likely development scenario, including a scenario where a production platform is tied back to the Manora Production facility.
The drilling cost of the Sri Trang-1 well will be offset against the G1/48 Reservation Area fee ($3.8 million) paid to the Department of Mineral Fuels (DMF) by the Joint Venture of the Reservation Area in the G1/48 concession.
Providing the well comes in on budget, Tap will not be required to contribute any further cash for the well. Tap’s share of the expected well cost is $1.02 million.