Carnarvon Picks Jack-up Rig for Buffalo Well in Timor Sea

OE Staff
Wednesday, June 30, 2021

Australian oil company Carnarvon Petroleum has selected a jack-up drilling rig for the Buffalo-10 well offshore Timor-Leste, planned to be drilled in October of this year.

The company has signed a letter of intent with an undisclosed offshore drilling contractor, with a formal rig contract now being finalized.

"Carnarvon is expecting to take possession of the rig upon completion of its current drilling operations, which is planned to occur around the end of October 2021," Carnarvon said.

The final spud date, according to Carnarvon, will be subject to on securing remaining drilling support services and equipment, as well as joint venture and regulatory permits, which are all in the works. Carnarvon'spartners in the project is Advance Energy, which recently paid US$20 million to acquire a 50% interest in the Buffalo PSC. 

The cash will be used for the drilling of the Buffalo-10 well, and will be at no cost to Carnarvon unless the well costs more than US$20m.

The Buffalo-10 well is designed to test the presence of a significant attic oil accumulation remaining after the original development. 

This interpretation has been supported by utilising state-of-the-art full-waveform inversion technology to reprocess the 3D seismic data over the field. 

Carnarvon Managing Director and CEO, Mr Adrian Cook, said: "I am pleased to announce that a rig has been selected to drill the Buffalo-10 well. Thisis a significant milestone towards the re-development of the Buffalo oil field. 

"Importantly, the project team is well advanced to start drilling the well as early as October 2021. The Buffalo field provides an excellent opportunity to quickly deliver a low-cost oil development that is poised to take advantage of the strengthening oil market and forecasted supply shortages.

"The Buffalo-10 well will commence an exciting period of highly prospective exploration activity for Carnarvon with the Pavo-1 and Apus-1 well campaign in the Bedout basin scheduled to commence soon after Buffalo-10.”

Credit: Carnarvon Petroleum

Buffalo

Carnarvon was awarded the WA-523-P permit, which included the previously developed Buffalo field, in May 2016 for an initial six-year term. The field was discovered by BHP in 1996 and subsequently developed using four wells drilled from a small, unmanned wellhead platform installed in 25 meters water depth, tied back to an FPSO.

Production started in December 1999 at production rates up to approximately 50,000 stb/d and terminated in November 2004 after the production of 20.5 MMstb of highly-undersaturated, light oil (53°API) from the Jurassic-age Elang Formation. All existing facilities and wells were decommissioned and removed prior to Carnarvon being awarded the permit.  

Carnarvon initially focused its technical efforts on reprocessing the 3D seismic dataset using full-waveform inversion (FWI) technology.

"This work supports the interpretation of a significant attic oil accumulation remaining after the original development, based on sub-optimal positioning of early wells using poorly processed seismic data. Reservoir modeling has been conducted using the latest structural interpretation and available well data, including an extensive history-matching effort to calibrate model/well performance to production rates and water-cut development (governed by strong aquifer drive) observed during the original production period," the company said previously.

Per Carnarvon, independently audited volumetric estimates of contingent resources in the Buffalo oil field are 31.1 million barrels (2C) with low estimates of 15.3 million barrels (1C) and high estimates of 47.8 million barrels (3C).

The Buffalo project was originally situated in Australian waters, but in 2018, the Australian and Timor-Leste governments signed a maritime boundary agreement that changed the maritime boundary between the two countries, affecting the WA-523-P permit that contains the Buffalo project.

The WA-523-P exploration permit has been split in two with a portion containing the Buffalo oil field changing from its Australian jurisdiction to being exclusively in the East Timor jurisdiction.

According to Advance Energy's previous statements, Buffalo PSC has the potential to deliver production of 40,000 bopd within three years of the B-10 Appraisal Well depending on the degree of success of the drilling of the well.

Categories: Drilling Industry News Rigs Australia/NZ Timor Sea

Related Stories

China's ENN, Zhenhua Oil Ink LNG Supply Deals with ADNOC

Eneos Scoops Jack-Up Drilling Contract Offshore Vietnam

Woodside Inks Long-Term LNG Supply Deal with China Resources

MODEC and Samsung Team Up to Install Carbon Capture Tech on FPSO

ADNOC Signs 15-Year LNG Supply Deal with Osaka Gas for Ruwais Project

Six New Gas Wells in Line for BP’s Shah Deniz Field in Caspian Sea

ADNOC Secures LNG Supply Deal with India's BPCL

Initial Drilling Results Raise Questions on South Korea’s Offshore Gas Viability

Japan's Mitsui Eyes Alaska LNG Project

ADES’ Fourth Suspended Jack-Up Rig Gets Work Offshore Thailand

Current News

Chuditch Gas Field Up for Summer Drilling Ops as Sunda Reshapes Ownership Structure

EnQuest Bags Two Production Sharing Contracts off Indonesia

Hanwha Drilling’s Tidal Action Drillship En Route to Petrobras’ Roncador Field

China's ENN, Zhenhua Oil Ink LNG Supply Deals with ADNOC

MODEC Wins ExxonMobil Guyana’s Hammerhead FPSO Contract

India Stretches Bids Deadline for 13 Offshore Deep-Sea Mineral Blocks

Indonesia Awards Oil and Gas Blocks to Boost Reserves

Sapura Energy Nets $22.6M in Offshore Support Vessel Contracts

CNOOC Puts Into Production New Oil Field in South China Sea

Sunda Energy Starts Environmental Consultation for Chuditch-2 Well Drilling Plans

Subscribe for AOG Digital E‑News

AOG Digital E-News is the subsea industry's largest circulation and most authoritative ENews Service, delivered to your Email three times per week

https://accounts.newwavemedia.com