DIRECTOR’S REPORT ON ACTIVITIES
The Far East and Australia Region (FEAR) continued to progress future oil and gas development projects and new interest purchases while managing the declining production in existing fields within the region.
Overall net production within FEAR has increased from 14,511 boepd reported in 2013 to 15,936 boepd during 2014. The increase was due to Mutineer/Exeter well work overs, start of production from
Balnaves Field in August 2014 and start of production in December 2013 from two new horizontal development wells within Philippines Galoc Field.
The highlights of 2014 included KUFPEC purchase of an 8% equity interest in the Wheatstone-Iago Joint Venture and a 6.4% interest in the 8.9 million tons per annum Wheatstone LNG Project in Western Australia. WA-335-P Bunyip-1 exploration well reached main objective and made a gas discovery.
In WA-49L, another gas discovery was made by drilling Black Chook-1 well. Mutineer/Exeter field completed work overs in three wells and started production. In Balnaves, two wells started production in August 2014. In WA-481P, well site surveys were completed and drilling campaign will start in 2015. In KUFPEC’s operated Block WA-427-P, all seismic survey acquisition and processing have been completed and interpretation was still ongoing at year end. KUFPEC signed 3 new exploration PSC’s in the South China Sea near Yacheng facilities.
WA-49-L (KUFPEC 35%)
The Production License WA-49-L contains the Balnaves Oil Development Project and the Julimar/Brunello Gas Development Project. The Balnaves Field wells, including two horizontal oil production wells, a gas injection well and a water injection well, started production in August 2014 with average production 21,835 bopd (gross). Julimar/Brunello gas (35% KUFPEC) will be produced to the Chevron Wheatstone LNG
Platform in which KUFPEC holds a 7% foundation equity. Gas production is scheduled to start up in 2016 from the Brunello Field.
Wheatstone LNG (KUFPEC 13.4%)
The cumulative overall project construction has progressed well in both the upstream and downstream projects. Critical path milestones continue to be achieved on plan and the schedule for first LNG cargo remains at 31 December 2016. The massive offshore Steel Gravity Structure (SGS) was completed and installed.
WA-54-L, formerly part of WA-191-P (KUFPEC 50% Fletcher; 37.5% Finucane)
The Fletcher/Finucane fields are produced via an 18 kilometer subsea flow line to the Mutineer/
Exeter FPSO. Production was shut-in several times during 2014 for technical reasons. The FPSO is scheduled for dry-dock in early 2015. Oil production during 2014 averaged 3,545 bopd (net to KUFPEC).
WA-191-P (KUFPEC 37.5%)
The permit for WA-191-P renewal is due in 2015 and acquisition and licensing of Davros MC3D to form part of Yr1 (2015) renewal program. Harriet Joint Venture (KUFPEC 19.28%) HJV 2014 net production averaged 698 boepd. HJV is in a mature asset which holds strategic value due to the ability of Varanus Island’s facilities to handle future domestic gas sales.
Mutineer-Exeter Field (KUFPEC 37.5%)
Production was shut-in for the first half of 2014. Three well work overs were conducted in Q3 and production resumed from one well in August and the other two wells in October. Net production was 423 bopd in 2014. FPSO dry-dock repairs are scheduled for mid-January 2015.
WA-427-P (KUFPEC 100%)
MAZ reprocessing and AVO Inversion were completed in November 2014 to de-risk prospects and prepare for final decision to drill.
WA-481-P (KUFPEC 30%)
Well site surveys were completed and drilling is planned to commence in 2015.
WA-335-P (KUFPEC 18.9%)
Seismic reprocessing/ Pre-Strack Depth Migration (PSDM) interpretation were completed. Bunyip-1 exploration well reached main objective and a gas discovery was made.
WA-41-R (KUFPEC 33.3%)
Finalized evaluation of Corowa discovery and conducted a subsurface review. Approval was obtained to conduct a FEED study to further evaluate the development concept for Corowa field.
WA-46-R (KUFPEC 20%)
Development of the small Tusk oil field is currently not commercial based on current oil prices.
WA-45-R (KUFPEC 20%)
Conducted additional subsurface, engineering, economical evaluation studies.
WA-8-L (KUFPEC 42.63%)
Studies are planned for 2015 to evaluate ways to commercialize this marginal field.
WA-356-P (KUFPEC 18.9%)
Currently assessing exploration potential and future program
13-1 Yacheng Field (KUFPEC 30%)
Yacheng Field produced net 4,611 boepd for KUFPEC during 2014, compared to 5,744 boepd reported in 2013, due to natural decline in this mature gas field. KUFPEC signed 3 new exploration PSC’s in the South China Sea near Yacheng facilities.
SC14C Galoc Field (KUFPEC 26.84%)
Galoc Field produced net 1,897 bopd during 2014, compared to 1,169 bopd during 2013. The increase in production is due to Phase II that included two new horizontal wells that started production in December 2013.