Daewoo begins reserves estimate for offshore A-1

Vol 9, PW 5 (16 Jun 05) People & Policy
     

Daewoo of South Korea has begun an in-house assessment of reserves at Myanmars offshore gas-prone A-1 block, where ONGC Videsh (20%) and GAIL (10%) together hold a 30% equity stake.

PETROWATCH learns Daewoo is likely to complete this exercise sometime in August. Shortly after, Daewoo is likely to appoint an external consultant to endorse its reserves figures.

Houston-based reserves consultant DeGolyer & MacNaughton will in all likelihood carry out this assignment. A Yangon source tells this report that DeGolyer is preferred because it has past experience of work in Myanmar where it has carried out reserve studies at the Yadana field operated by Total and the Yetagun field operated by Petronas.

Daewoo is close to completing its eight-well drilling programme at A-1 for this financial year. Two wells are now being drilled: one appraisal well at Shwe-5-A and one exploratory well at Shwe Phyu.

This programme will be completed by July, says a source. Myanmar believes the Shwe prospect alone could hold about 6 trillion cubic feet gas while the Shwe Phyu prospect could hold between 2-tcf and 4-tcf.

The entire A-1 block could hold between 8-tcf and 9-tcf in place gas. Daewoo has not yet submitted to Myanmar authorities its work programme for the next financial year.

We expect the work programme will consist of appraisal of the Shwe Phyu prospect and exploration at the Ngwe prospect. Like other operators in the region, Daewoo will be constrained by an acute shortage of drilling rigs.

If they get a rig on long-term contract theyd like to drill as many wells as possible. Unfortunately, Daewoo cannot retain either of the two rigs now drilling on the block.

One rig will go to Singapore for a refit while the other has been contracted to drill at block M-9.