Fri 29 Oct 2004
Filed under: Business / Trade,News
Independent MRPL is aiming to boost oil production at its Mann field onshore Burma via a combined exploration and development drilling program targeting deeper formations.
The Singapore-registered company will spend a reported $9 million on the latest program on its performance compensation contract (PPC).
A 3D seismic survey was acquired over the entire contract area in 1998 and to date this has identified 30 prospects or leads.
The operator believes there is significant exploration potential of the flanks of the structure and also in Mann’s untested deeper horizons at sub-surface depths of below 8000 feet.
Unproven resources in the deeper formations are estimated at more than 140 million barrels of oil.
The drilling program will include the reopening of shut-in wells and the servicing of equipment in existing producers.
MPRL has already invested close to $75 million in the PPC, where Mann is located about 560 kilometres north of the capital Rangoon.
Mann, which was discovered in 1970, recorded peak production of 24,500 barrels per day nine years later. However, output has since dwindled to about one tenth of this as only 234 of the 650 wells on the field are producing with the remainder being shut-in.
The field also produces 3.6 million cubic feet per day of gas.
While these amounts are small, the severe production decline at the field has been arrested since MPRL took over full operational responsibility from Baker Hughes and incremental oil production – from which the indie gets its revenues – has almost doubled to 1350 bpd.
The 15-year PCC that MPRL operates jointly with state-owned Myanmar Oil & Gas Enterprise, expires in 2014.
Burma currently produces just 11,500 bpd of oil from its onshore acreage and this is transported by pipeline and barge to local refineries.