DIRECTOR’S REPORT ON ACTIVITIES
The Far East and Australia Region (FEAR) has 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 8,312 boe/day reported
in 2012 to 14,237 boe/day during 2013. The increase is due to closing of the purchase of 15.3% from
BP in Yacheng Field, start of production from Fletcher/Finucane Fields in May 2013 and start of
production in December 2013 of two new horizontal development wells within Galoc Field. The drilling
of development wells on the Balnaves Field oil development project was completed in December 2013
and oil production is on schedule to start in 2014 into an FPSO.
The FEAR highlights of 2013 included the closing on 11 December 2013 of the purchase of a 15.3%
interest in Yacheng Gas Field from BP which increased KUFPEC’s interest to 30% and added 2,867
boed net to KUFPEC in 2013. In Mutineer/Exeter Field, KUFPEC acquired 4.1% interest from Woodside
to increase the total interest to 37.5%. The new oil production at Fletcher/Finucane Fields added 9,098
bopd net to KUFPEC in the 8 months during 2013 from the three wells which have been flowing to
the Mutineer/Exeter FPSO. Further work in 2014 will be workovers at Mutineer/Exeter and drilling
of a delineation well near Fletcher called Vanuatu-1 starting in January 2014. The Balnaves Oil Field
development wells were drilled and suspended in 2013 for connection in mid-2014 to a new FPSO and
expected to start production of up to 7,000 bopd net to KUFPEC.
WA-49-L formerly part of WA-356-P (KUFPEC: 35%)
The Production License WA-49-L contains the Balnaves Oil Development Project and the Julimar/
Brunello Gas Development Project. The Balnaves Oil Field wells include two horizontal oil production
wells, a gas injection well and a water injection well which will be hooked up to a new FPSO and
scheduled to start production in mid-2014. Julimar/Brunello gas (35% KUFPEC) will be flowed to the
Chevron Wheatstone LNG Platform of which KUFPEC holds a 7% foundation membership. Brunello
Field will be initially put on production starting at the end of 2016. A new broad-band 3D seismic survey
was acquired in 2013 over Julimar/Brunello and Balnaves to improve resolution of the channel sand
Wheatstone LNG (KUFPEC: 7%)
The Wheatstone LNG Project offshore central processing platform, onshore site construction and 225
kilometer gas pipeline is progressing according to plan. Gas production is scheduled to start at the
end of 2016 into two LNG trains being built near Onslow in Western Australia and will have a combined
LNG capacity of 8.9 mmtpa.
WA-54-L, formerly part of WA-191-P (KUFPEC: 50% Fletcher; 37.5% Finucane)
The WA-54-L production license was granted by the Government in early 2013 and oil production
from Fletcher/Finucane Fields started in May 2013 through an 18 kilometer subsea flowline to the
Mutineer/Exeter FPSO. Oil production during the 8 months of 2013 averaged 9,098 bopd net to
KUFPEC from the combined flow. An exploratory Vanuatu-1 well on a structure adjacent to Fletcher
will start drilling in January 2014.
WA-191-P (KUFPEC: 37.5%)
The remaining exploration license WA-191-P is in compliance of the work program after the granting
of WA-54-L production license for Fletcher/Finucane Fields in early 2013. The Joint Venture purchased
part of the large Monodon 3D seismic reprocessing and merging conducted by DUG, and interpretation
was advanced during 2013 for maturing exploration prospects.
Harriet Joint Venture (KUFPEC: 19.28%)
Net sales increased to 2,747 boepd from 2,487 boepd in 2012 due to increased demand by industrial consumers. New well drilling has been deferred into 2014 due to rig availability and possible 3D seismic acquisition in 2014.
Mutineer-Exeter Field (KUFPEC: 37.5%)
Net production fell to 136 bopd in 2013 from 1,651 bopd in 2012 due to failure of electronic submersible pumps and rig availability delaying workovers into 2014. A new well planned for Exeter Field during 2013 has also been deferred. The only production had been primarily from intermittent free flow of oil for part of the year. Production was also shut in for scheduled maintenance of the FPSO vessel in Singapore
and for connection of the Fletcher/Finucane production wells. Three Muntineer/Exeter wells are scheduled for workover in 2014 to replace the ESP’s. KUFPEC acquired an additional 4.1% interest in Mutineer/Exeter from Santos in 2013 after the departure of Woodside from the partnership.
WA-427-P (KUFPEC: 100%)
Seismic reprocessing and inversion has been initiated during 2013, and the Government has approved changes to the work program to allow for interpretation and delayed decision on a drilling location.
WA-481-P (KUFPEC: 30%)
2,573 square kilometers of 3D seismic and 581 kilometers of 2D seismic were acquired in March through
May 2013. Processing is underway and expected to be completed in early 2014. A three well drilling
campaign is expected to start in late 2014.
WA-335-P (KUFPEC: 18.9%)
Interpretation of 3D seismic during 2013 resulted in approval to drill Bunyip-1 well in early 2014 to
delineate the Tallaganda-1 discovery from the adjacent WA-351-P.
WA-41-R (KUFPEC: 33.3%)
Reevalution of the Corowa oil discovery coupled with a lower cost Floating Production Facility by a new
opertor has improved the economics for a possible development plan.
WA-46-R (KUFPEC: 20%)
New operator formulating possible development plans for this retention lease.
WA-45-R (KUFPEC: 20%)
Retention license under review for possible development plans.
WA-8-L (KUFPEC: 42.63%)
Production license under review for development plans of the Amulet oil discovery.
WA-356-P (KUFPEC: 35%)
Interpretation is continuing to define exploration potential.
13-1 Yacheng Field (KUFPEC: 30%)
KUFPEC completed the purchase of an additional 15.3% interest in Yacheng Field from BP during 2013. Yacheng Field produced net 5,784 boepd for KUFPEC with the higher interest level during 2013. Normal field decline and several shut-in wells producing high water has affected overall production until additional workovers can be scheduled in 2014. Three workovers were completed in 2013. Two possible exploration wells on the producing license are being evaluated for drilling in 2014.
SC14C Galoc Field (KUFPEC: 26.84%)
Galoc Field produced net 1,215 bopd for KUFPEC during 2013, compared to about 950 bopd reported during 2012. During 2013, Phase II drilling of two new horizontal infill wells was completed and started production during December 2013. Average net production during the month of December 2013 increased to 2,802 bopd.