Updates on Lempuyang-1 and Lukut-1 testing program

Kulcyzk  Oil venture has announced that the Brunei Block L Joint Venture will shortly commence a testing program at the Lempuyang-1 and Lukut-1 wells, following encouraging indications during the drilling and from the interpretation of wireline logs from both wells. In addition, KOV announces the completion of both the Block L gravity survey and a large 3D seismic survey in Block M.

Testing of the Lempuyang-1 well is expected to commence in January 2011 and will be followed by the testing of the Lukut-1 well. The testing program is designed to test two of three potential intervals in the Lempuyang-1 well, with an aggregate thickness of 56.4 metres and three of ten potential intervals in the Lukut-1 well, with an aggregate thickness of 155 metres. It may take approximately 14 days to evaluate each of the test intervals. Key components for testing, including the rig and the test equipment, have been secured.

The Lukut-1 well was drilled on Brunei Block L and suspended in mid-June pending testing by a service rig. The second Block L well, Lempuyang-1, commenced drilling operations on July 15 and was cased to total depth in early October and suspended pending testing.

Block L Airborne Gravity Survey

An airborne gravity survey covering approx. 3,000 km(2), including all of Block L, has been completed and interpretation is ongoing. Kulczyk Oil Brunei, an indirect wholly-owned subsidiary of Kulczyk Oil, has a 40% interest in Block L.

Block M 3D Seismic Program

The Belait North 3D seismic survey covers approx. 136 sq km. Field operations commenced on 3 July 2010 and data recording was completed on 20 November 2010. Restoration work and demobilization operations will continue until early December. During peak operations in October more than 1,200 people were employed on the project. The project has been completed within budget and slightly ahead of schedule. The survey area covers the northern extension of the prospective trend covered by the 118 sq km 2009 Belait 3D seismic survey. The combined 3D seismic coverage of 255 sq km covers approx. two-thirds of the Belait anticlinal trend, the major structural feature on Block M. Processing of the 3D seismic data is underway and early products are expected in March 2011. This will be followed by interpretation and mapping of the data to delineate prospects for potential drilling in 2011/2012.

KOV Borneo Limited, an indirect wholly-owned subsidiary of Kulczyk Oil, has a 36% interest in Block M.

Source: Kulczyk Oil Ventures

Brunei's dependency on Oil and Gas sector chart

In the year 2002,  Brunei's dependency on oil and gas sector is only about 53% but it  had increased by 13% to 70% in year 2007. [1]

From the economic's points of view, this is quite risky since this non renewable energy sector will not last forever. They believe, if Brunei can no longer produce oil and gas, the country's economic will collapse.

But as a Petroleum student, I still can see a promising bright future of oil and gas industry in Brunei for at least for the next 20 years. Currently Brunei only produces just a small part of the oil reserve it has. 

Since 1929, Most of the oil and gas produces are coming from the 25km long oilfield stretches from Kuala Belait to Seria and recently exploration has been extended to Tutong district  and the outcomes is very promising.[2]

Both wells at  Lukut-1  and Lempuyang-1 which are located in Tutong District has been focused since the positive 3D seismic results and encouraging indication from wire lines logs were received during the exploration. However Testing on both wells will only be continued by early January next year. In the second half period of 2010, both wells were drilled, however the operations were discontinued due to some issue on the pending testing.[3]

References:

[1] http://www.depd.gov.bn/

[2] http://www.brudirect.com/DailyInfo/News/Archive/Apr08/190408/nite03.htm

[3] http://www.energy-pedia.com/article.aspx?articleid=143240

Brunei's Crude Oil Export destination (2009)

I just knew this info that about a quarter of our commercial crude oil  is exported to Indonesia and only 2.4% is exported to Japan..

Brunei' LNG sales destination 2009

Fact 1:  93% of Brunei's Liquefied Natural Gas is sales to Japan and only 7% is sales to Korea.[1]

Fact 2:  Liquefied natural gas (LNG) is produced by Brunei LNG company which operates in Lumut, Seria.[2]

Fact 3: Natural Gas in Brunei is supplied by

           1) BSP 

                  a) South West Ampa Field

                  b) Fairley Field

                  c) Gannet Field

                  d) Egret Field (starting Aug 2008)

           2) Total

                 a) Jamalul Alam Field

                 b) Maharaja Lela Field [2]

Fact 4: At the year ending 2009, Brunei's daily production contributed about 0.38% of world's natural gas production.[3]

Fact 5: The production of natural gas in 2009 has decreased by 5.8% to 1.1 billion cubic feet per day compared to 2008.[3]

Fact6: As at 2009, Brunei's natural gas proved reserved stands at 0.35 trillion cubic metres,  (350,000,000,000 cubic metres). [3]

Sources: [1] Petroleum unit website

                     [2] B lng website

                     [3] British Petroleum Website

Murphy Oil Adds New Acreage in Brunei Darussalam

Tuesday, Dec 14, 2010,  Murphy Oil Corporation (NYSE: MUR) announced today that its wholly owned subsidiary, Canam Brunei Oil Ltd., has entered into a Production Sharing Agreement with Brunei National Petroleum Company Sendirian Berhad (PetroleumBRUNEI) for interests in offshore Block CA-2. Murphy will hold a 30% working interest in Block CA-2. Murphy currently holds a 5% working interest in Block CA-1.

“We are very pleased to expand our South East Asia portfolio with entry into Brunei Darussalam and we look forward to an active exploration program.”

David M. Wood, Murphy’s President and Chief Executive Officer, commented, “We are very pleased to expand our South East Asia portfolio with entry into Brunei Darussalam and we look forward to an active exploration program.”

 Source: http://www.youroilandgasnews.com/murphy+oil+adds+new+acreage+in+brunei+darussalam_57418.html

World Oil Prices Shoot Up... $$$

Bandar Seri Begawan - Brunei Darussalam is all set to shoot for the stars as world oil price rockets sky-high, potentially swelling the nation's coffers.

And that is good news for the country, which has embarked on a comprehensive national development plan.

That would also help to meet the growing budget needs towards maintaining the Sultanate's welfare state status.

The population has been steadily growing, which is now inching towards the half-million mark as compared to 250,000, in the 1960s.

That means more money to maintain the countries free services, which largely depend on oil and gas exports as the mainstay.

It costs money to upkeep the free educational and medical systems going and there are umpteen subsidies both visible and hidden that keep the people happy.

There is no personal income tax and there is a large civil service where majority of the subjects are given jobs.

And now what is seen as a bonanza for Brunei is the fact that international oil price has shot up to around US$94 per barrel that will keep the country in clover.

And some people in the Sultanate are watching hopefully as the oil price relentlessly goes upwards towards the symbolic US$100 from the previous long standing rate of around US$60 per barrel.

There will now be much hope for the country to progress.

The sudden rise in oil prices seems a replay of events 30 years ago.

Before September 2003, the inflation-adjusted price of a barrel of crude oil was generally under US$25 per barrel.

During 2003, the price rose above US$30, and reached US$60 by August 11, 2005, and peaked at US$147.30 in July 2008.

Commentators at that time attributed these price increases to many factors, including reports from the United States Department of Energy and others showing a decline in petroleum reserves, worries over peak oil Middle East tension, and oil price speculation.

Now market analysts say that global oil consumption is expected to rise to a record level next year, according to the Paris-based International Energy Agency and other forecasters.

Saudi Arabian Oil Minister Ali al-Naimi said in Quito on Dec 11 that oil at US$70 to US$80 a barrel is a good price, that the market is stable and supply and demand are in balance, while Kuwaiti Oil Minister Sheikh Ahmad al-Abdullah al-Sabah said then that he was satisfied with prices near US$90.

Qatar's Oil Minister Abdullah bin Hamad al-Attiyah has said that oil around the US$80 region was best for producers and consumers. Algerian Oil Minister Youcef Yousfi said at a conference in Doha on December 1 that the market is in a "normal situation" and prices are likely to be stable for months.

Some Wall Street strategists expect prices will return to US$100 for the first time in two years during 2011 amid rising global demand, including Goldman Sachs Group Inc, Morgan Stanley, JPMorgan Chase & Co and Bank of America Merrill Lynch.

The Dow Jones industrial average and the S&P 500 index both rose Wednesday to their highest levels since July 2008 after the Commerce Department said the US economy rose in the third quarter at an annual rate of 2.6 per cent, a slight increase from its earlier estimate.

"The price of crude is highly connected to the direction of the equities markets and confidence in a global recovery," Sander Capital Advisors said in a report.

"When equities go up, it tends to mean confidence is up and thus consumption is up." -- Courtesy of Borneo Bulletin

My life..

Sometimes, it is hard to explain what you really mean and sometimes, you really don't want to clarify anything because it may hurt some people's feeling and it may cause loss of confident, relationship and trust on you.

 It is not a thing that you really can  face and it also not a thing that should be present in your life...

 But not to tell the truth  at the end make the six walls surrounding you seems to press you thinner and harder... 

You are in dilemma and at the end you just taken no action which is actually an action from you... you don't know what to do but to keep silent...

The Solution for Every Problem

Do not Rush....

What Allaah has mentioned in the hadeeth qudsi of the great virtues of those whom He loves. It was narrated that Abu Hurayrah said:
The Messenger of Allaah (peace and blessings of Allaah be upon him) said: "... and My servant continues to draw near to Me with supererogatory works (nawafil) so that I shall love him. When I love him I am his hearing with which he hears, his seeing with which he sees, his hand with which he uses and his foot with which he walks. Were he to ask [something] of Me, I would surely give it to him, and were he to ask Me for refuge, I would surely grant him it." {Narrated by al-Bukhaari, 6502.}

This hadeeth qudsi includes a number of benefits of Allaah's love for His slave:

1) "I am his hearing with which he hears" i.e., he does not listen to anything but that which Allaah loves.
2) "his seeing with which he sees" i.e., he does not see anything but that which Allaah loves.
3) "his hand with which he uses " i.e., he does not do anything with his hand but that which Allaah loves.
4) "and his foot with which he walks" i.e., he does not go towards anything but that which Allaah loves.
5) "Were he to ask [something] of Me, I would surely give it to him" i.e., his du'aa's are heard and his requests are granted.
6) "and were he to ask Me for refuge, I would surely grant him it" i.e., he is protected by Allaah from all things...

We ask Allaah to help us to please Him.

And Allaah knows best.

Updates on ML-5

TOTAL E&P Borneo BV (TEPB) said it believes there is a good indication for oil and gas production at the ML-5 well in Block B within three to four years.

Yves Grosjean, general manager of TEPB, emphasised though that it is still in an early stage and might be too soon to tell.

Grosjean said: "We would say there is good indication of commerciality but it won't be immediate as it will require a new phase of development of the field."

He told The Brunei Times in a telephone interview yesterday that the time it takes just to construct and install a new platform, which is required, will take three to four years.

Total in a statement on Tuesday said that during their tests, 10 million cubic feet of gas and 220 barrels per day of condensate were produced, from a zone situated at 5,350m depth.

However, Grosjean said that the production tests they have carried out do not represent the full extent of what the well will produce during commercial production because only a limited part of the reservoir was tested.

"There is more data to be acquired for us to fully carry out the model of the field. The other data will be enough to bridge the gap to compute future production, but it's too early to say anything now," he added.

Grosjean explained that the findings from ML-5 tell of gas at high pressure conditions in the earth and contains significant amounts of liquid dissolved in it.

"Therefore, during production process, we recovered a large volume of gas but also interesting volumes of liquids which we call condensate, which is actually liquid petroleum," said Grosjean, adding that the content of the liquid is normal for a well.

He went on to say that condensate is liquids which are dissolved in the gas when it is at a pressure down in the earth.

"So when we produce this gas, which is rich in liquids during the process, we can extract the liquid and this process is condensation. Just as steam condensates to become water," he explained.

On Tuesday, Total's statement said that the ML-5 well, the deepest ever drilled in Brunei, located offshore in Block B.

It discovered gas with condensate in High Pressure/High Temperature formations (HP/HT), with a total vertical depth of 5,664m.

"It is a beauty to be producing at such great depth and pressure and it is indeed (where) you normally find gasses which are rich in liquids," said Grosjean.

Total claims this is the deepest successful test in Southeast Asia and the gross thickness of hydro-carbon bearing formation exceeds 800m.

The ML-5 well is the third positive well of an exploration campaign which started in 2007, targeting the deep HP/HT horizons of the Maharaja Lela structure.

"The development of the new resources and production through the existing facilities is currently being studied," said Total.

Total operates the Maharaja Lela/Jamalulalam field with a 37.5 per cent interest. Its average production of gas and condensate was more than 28,000 barrels of oil equivalent per day last year. The Brunei Times

New gas, condensate discovery in Block B

Thursday, October 14, 2010

TOTAL E&P Borneo has announced a "significant" new gas and condensate discovery in the ML-5 well, the deepest ever drilled in Brunei, located offshore in Block B, Total said yesterday.

In a press statement late last night, French oil and gas company Total said the ML-5 well, located in a water depth of 65m and around 50km from the coastline, was drilled eight km to the south of the Maharaja Lela/Jamalulalam field in a new, deep fault panel.

It discovered gas with condensate in High Pressure/High Temperature formations (HP/HT). With a total vertical depth of 5,664m, the well is the deepest ever drilled in Brunei, said Total.

During tests, 10 million cubic feet of gas and 220 barrels per day of condensate were produced, from a zone situated at 5,350m depth.

Total claims that this is the deepest successful test in Southeast Asia.

The gross thickness of the hydrocarbon bearing formation exceeds 800m, it said.

The ML-5 well is the third positive well of an exploration campaign which started in 2007, targeting the deep HP/HT horizons of the Maharaja Lela structure.

The development of the new resources and production through the existing facilities is currently being studied, Total said.

Total operates the Maharaja Lela/Jamalulalam field, located in Block B with a 37.5 per cent interest. Its average production of gas and condensate was more than 28,000 barrels of oil equivalent per day last year. The French company also announced that it would resume its explorations in Block CA-1, following the Deed of Amendment signed, with a 54 per cent interest.

The Brunei Times

Block L Exploration Well Reaches Final Depth

Updated

Calgary, Alberta - Kulczyk Oil Ventures Inc advised that the Lempuyang-1 exploration well in Block L, onshore Brunei Darussalam has reached a final total depth ("TD") of 3,220 metres measured depth from rotary table ("MDRT") (2,817 metres true vertical depth), according to Marketwrire.

The preliminary interpretation of the wireline logs suggests gas charged reservoirs may have been encountered in three target horizons.

The drilling and wireline logging of the Lempuyang-1 well is now complete and a 4.5" liner is being set to total depth in preparation for the 'possible testing of the well.

The TD was set above the original proposed depth of 3,500 metres MDRT because of drilling challenges associated with managing overpressures in the well.

Overpressure was expected and accounted for in the original well design.

However, several significant gas kicks encountered while drilling meant that the design needed to be modified to suit the conditions in the wellbore.

Three of the four target horizons in the wellbore were fully penetrated and assessed by the well. However, only the upper part of the lowest horizon (Green) was intersected.

The preliminary interpretation of the wireline logs indicates possible gas-charged reservoirs at each of the three lowest target horizons.

The Lempuyang prospect comprises five fault blocks with up to five target horizons in each block. A 3-D seismic data acquired in May 2009 indicated seismic amplitude anomalies which appeared to correspond to the target zones. Lempuyang-1 was designed to intersect four of the five seismic horizons.

The operator has advised that they intend to proceed to a testing programme and are optimistic about the commerciality of the prospect.

However, Kulczyk Oil has yet to reach a similar conclusion as it is still reviewing the well data and believes that a decision as to whether or not the Lempuyang prospect can be commercially developed can only be reached after both testing and further drilling.

The partners in Brunei Block L and in the Lempuyang-1 well are Kulczyk Oil Brunei Limited (40 per cent), AED South East Asia Limited (50 per cent) and QAF Brunei Sdn Bhd (10 per cent).

Kulczyk Oil also owns an interest in Block M, the other onshore exploration block in Brunei, through KOV Borneo Limited, an indirect wholly-owned subsidiary of Kulczyk Oil, which has a 36 per cent interest in Block M and in each of the Mawar-1 and Markisa-1 wells.

Kulczyk Oil is an international upstream oil and gas exploration company with a diversified portfolio of projects in Brunei, Syria and Ukraine and with a risk profile ranging from exploration in Brunei and Syria to production and development in Ukraine.

In Brunei, KOV owns working interests in two production sharing agreements which gives the company the right to explore for and produce oil and natural gas from Block L and Block M.

KOV owns a 40 per cent working interest in Block L, a 2,220 square kilometre (550,000 acre) area covering onshore and offshore areas in northern Brunei and a 36 per cent working interest in Block M, a 3,011 square kilometre (744,000 acre) area onshore in southern Brunei. -- Courtesy of Borneo Bulletin

Exam fever

Wish me luck for my first exam paper on this Thursday...

Stay awake all the night long....
wishing the night could be longer.....
Wishing once read, will never forget ....
excitement and nervousness are the games
Which one will be the dominant....
Will be known soon...

Gulf Of Mexico : Oil leak estimation

 How much  Oil has been Leaked into the Gulf of Mexico ?

No One Knows... because you don't want to be blamed

Petrol pumps meter cheating...

MOTORISTS are complaining about rampant cheating at some petrol stations.

They said cheatings still occur even though filling stations put up notices advising customers to monitor the meter while attendants pump petrol into their tanks.

Recently, a motorist who declined to be identified, filled her salon car with half tank of petrol during daytime which usually costs her between $18 and $20. While the pump nozzle was stuck in the tank, the consumer continued, the counter did not reach zero and she ended up paying $25.

"The car before mine pumped $5 fuel, as seen on the meter. Without resetting the fuel pump, the attendant started pumping fuel and the meter jumped to $6.50 within two seconds and I only managed to stop it when the attendant pumped up to $10," said the motorist.

The woman said that the modus operandi that the attendant used was to ask the driver to move the car forward to make way for an incoming car. By doing so, the attendant blocks the driver's view of the meter, while the pump is running.

Such practice, according to the motorist, occurred in Telisai, Jerudong and Gadong, after discussing it with friends on online social networks.

Nasehin Yahya, manager of a petrol station in Gadong, said yesterday he was aware of consumers complaining about the petrol pump's meter cheating, although none of the incidents have been reported at his station.

"It is better for customers to report directly to the gas station (supervisor) if there is any incident that upset them, so the matter will be resolved immediately," Nasehin told The Brunei Times.

He said that if such incident ever occurred, the company will conduct an investigation. "However, if we found that our staff were being dishonest or cheating the customers, we will immediately terminate them," he said.

Nasehin added that all his staff were prohibited from practising such dishonest behaviour. "We told them that the company knows all possible tricks, so don't try one."

He explained that every night when the staff do the sales calculation, they have to make sure that the amount of outgoing petrol tallies with the money received.

To provide its best service for the customers, the station is required to follow the general rules known as "the eight steps".

The steps are: greetings: ask the customers what type of service or product they need; apply safety standards which include requesting customers to present container approval, switch off cellular phone and no smoking in the premises; collect the payment; inform the customers about promotion products; and remind motorists to drive safely.

A supervisor of another gas station in Bandar area who refused to be named said that any employee found cheating the customers will be immediately terminated. "This will not need any prior warning because we will take strict action of terminating our staff who have cheated at the gas pump," the supervisor said.

He added that every day, a routine check must be done before the gas station opens for business. The check list consists of making sure that all dispensers are functioning; dispenser, nozzle, handles, hoses and splash guards clean and undamaged.

Both of them said that sometimes they found that in the case of an old type of car, it will need some time for the petrol to fill the tank. Some motorists even complained that the amount of petrol did not match the amounts paid, but in actuality, it takes some time for the gas to fill the tank, they explained.

The Brunei Times

P/S : It was reported the incident happened in several petrol station in  the country, Is it true that the staffs are cheating? or it happened due to some machine error- could be due to new machines were installed in these stations... 

This incident remind me of a theory of Refilling your Oil Tank, some people believe that, you get more petrol a.k.a paying less for petrol if you buy it early in the morning. 

This theory is based on that, when the temperature is low (in the morning), the oil contract, and since oil is calculated by volume, you get more oil for the same price. 

Logically the theory should works but I am not sure either it really happens. How about if the station heated up the oil by certain degree, then you ll get less oil a.k.a you pay higher... :)

photo credits : http://travelblog.portfoliocollection.com/FeaturedImage/petrol-pump.jpg, http://www.freshgasflow.com/images/physics_images/vaporiser_images/liquids_metal_contract_vapo.gif

Block M Well Shows ‘Better Than Expected' Sand Quality

Kuala Belait - Markisa -1 exploration well in Block M, the largest onshore project in Brunei Darussalam, has started to yield optimistic results.

According to Marketwire, drilling, which began on September 26 this year, it has reached an intermediate depth of 987 metres where engineers have discovered "better than expected" sand quality in the lower langsat upper sand section, whilst preliminary interpretation of wireline, pressure as well as sampling data suggest that some "good quality reservoir" has been intersected.

Data collected on two of the shallower objectives that have already been logged also suggest the presence of low saturation hydrocarbons with sands appearing to be "water wet".

The chief executive of Tap, Peter Stickland, said that the combination of both the condition of the reservoir quality and the presence of low saturation hydrocarbons indicates "further opportunities" for the said objectives.

"These shallow Markisa-1 results will now be incorporated into our geologic of the Belait region to better define future drilling opportunities," he said and is looking forward to deeper drilling, which will commence within the next four to five days.

The Markisa-1 exploratory well that has been programmed to reach a well depth of 1,335 metres, is the second of a minimum of three wells to be drilled in Block M during Phase 1 exploration period that will end in August 2011.

It will also be used to evaluate several secondary targets within the Miocene Belait Formation and is expected to intersect the main Belait thrust fault.

The partners for Block M include operator Tap Energy (Borneo) with 39 per cent, Kulczky Oil Ventures with 36 per cent, China Sino Oil Company with 21 per cent and Jana Corporation with four per cent.

Kulczyk Oil also owns an interest in Block L, the other onshore exploration block in Brunei, through Kulczyk Oil Brunei Limited, an indirect wholly-owned subsidiary of Kulczyk Oil, which has a 40 per cent interest in Block L and in each of the Lukut-1 and Lempuyang-1 wells.

The first well, Lukut-1, was drilled on Brunei Block L and suspended in mid-June pending testing by a service rig. A second Block L well, Lempuyang-1, commenced drilling operations on July 15 and is currently logging. -- Courtesy of Borneo Bulletin

History Of Oil and Gas Industry in Brunei

HISTORY OF OIL ANG GAS INDUSTRY IN BRUNEI by Yusri@2009

• 1899 - For the first time in Brunei history, oil well was drilled. It reached a depth of 850 feet below the Earth surface, unfortunately, this site ( found through floating oil seepage at Sungai Berkunchi)  contained no oil.

• The easiest way to find oil field location in this era was by drilling well near the oil seepages spot besides a confirmation from Geology analysis.
• It was not until 12 years after the first drilling, oil exploration was continued. British Borneo Petroleum Syndicate Limited made a Geological survey and drilled 4 wells at Bukit Puan and Belait anticline near Labi between year 1912 – 1917 but found no oil.
  
  
  
• Singapore Consortium, the Shanghai Langkat Company was awarded right to explore small area of Jerudong and made 5 explorations on oil and gas. One of the drilled well containing oil but it has no commercial value.
  
  
• Later Nederlandsche Koloniale Petroleum Maatschppij (A Dutch Company) made its first drill in Belait district
  
  
• In the earliest 1920's Shell Exploration staff in Miri began to work further afield in Brunei and drilled a total of 8 wells but all were found to be dry holes. The Shell Group Company also introduced modern survey technique in a low relief with little Geology yield results.
  
  
• British Malayan Petroleum Company, Shell subsidiary was formed in year 1922. Their first drilled well named Labi 5 found to be dried but later they found a well that produced gas at high pressure but was abandoned in 1931.
  
  
• In 1926 while Mariott and Cocaharine who worked for British Malayan Petroleum in Miri were on the journey to Swiss Geophysict in Tali they stopped at Sungei Seria and smell oil fumes. This was the first evident towards oil exploration in Seria.
  
  
• In 1928, during the oil exploration at Padang Berawa, hundreds of gas seepage containing Methane and Ethane were reported, which indicates a high possibility of oil and Gas field downward. A gravity method indicates two indistinct gravity lines and oil showing in shallow core holes.
  
  
• British Malayan Company was then began the oil exploration in Seria
  • The ineffective cable tools equipments were used to punch hole into the ground using the pulley system.
    
    
  • After few feet hole were made, the bit were pull out and replaced with bailer (open tube with valve at the bottom) to remove the smashed rock and others.
    
    
  • The technology used during that years were not so discourage, tough and slow
    
    
  • Wall collapse and salt water flooding the well from higher sands caused the operation getting harder and more challenging.
    
    
  • Since the oil drilling via cable tools equipment was so slow, the operation which started in July 1928 and witnesses by Pengiran Jaya Negara pengiran Haji Abu Bakar was extended to year 1929.
    
    
  • The oil and gas strike for the first time from a commercial valued reservoir to the well at depth of 974 feet. Later, the name Padang Berawa disappeared and replaced with name Seria.
    
    
• During these earliest year, Brunei had a very poor country development which indirectly slowing down the oil and gas industry
  
  
  • Transportation was so difficult,
    
    
    • Beach sides were used for land transportation
      • Sometimes affected by the water tidal.
      • Sometimes vehicle get bogged while using the road
        
        
    • Small rowing boat was used as a ferry to cross river but only available at certain time.
      
      
  • Wild water animals especially giant Crocodile make the place to be insecure
  • Stone were unavailable in this country and need to be imported from Niah which was a very far away.
  • Padang Berawa (Sungai Seria) is a swamp
    • Walking around this muddy area was very difficult like climbing
    • Water is a major problem here; the only available water supply was from the hidden depth roots with sour taste and red in colour.
    • The place is submerged by water during rainy season
      
      
• By 1938 – Road between Kuala Belait and Seria were developed, transportation become easy and cheaper

• February 1955 , first Seria Gas Plant was completed and ready for operation:
  • To process about 100 tons of Seria Crude oil each day.
  • To produce sufficient gasoline and fuel for country use. To deal with 3.2 million cubic metres of natural gas per day.
    
    
  • The underneath pressure became lower after oil was pumped out of the reservoir. Gas was injected to the fluid to 'reduce' its weight {specific gravity) therefore able to reach the surface.
    
    
  • 1933 – 1^st offshore well was drilled from a single well platform connected to the shore by narrow boardwalk and the next few years encourage the development of deviated drilling or directional drilling which enable the hole to be 'bent' in any desired direction.
    
    
  • 1950s : decision was made that, it is more economic and undemanding to built a platform in the offshore to extract the oil/gas underneath sea compare if it was extracted via deviated well
    
    
  • 1957 : BMPC which required a major rule in Sultanate was reform to Brunei Shell Petroleum sendirian Berhad, BSP which is share by ratio of 50:50 ; Brunei Government and Royal Dutch
    
    
• 1959 : High deviation well of angle 54⁰ was implemented succesfully,
  • 1963 : First offshore oil well – South west Ampa, this reservoirs hold more than half of Brunei Darussalam's total gas reserves and gas production from the field accounts for 60 per cent of Brunei Production in year company's total production.
    
    
    • 1972:  Brunei Liquefied Natural Gas (LNG) plant opened this year and it is the 4th largest LNG plants in the world by that time
      
      
  • 1979 – Oil production was at the peak, over 250,000 barrels per day. Since then it has been deliberately cut back to extend the life of oil reserves and improve recovery rates
    
    
  • 2001 - His Royal Highness The Crown Prince Pengiran Muda Haji Al-Muhtadee Billah officially launches the opening up of new offshore Blocks J and K (10,000 sq.km total area) and in year 2005 : PetroleumBRUNEI launches the onshore Block L and M (5,264 sq.km)
    
    
  • 2002 - The incorporated of 100% government owned Oil Exploration and Production company - Brunei National Petroleum Company Sdn Bhd (PetroleumBRUNEI)
    
    
  • Gas Chemicals Company Inc., PetroleumBRUNEI and ITOCHU Corporation) is building the country's first methanol plant which is expected to operate by 2010.
    
    
• Year 2000 estimation , Brunei reserve for oil is 1.4BBbbl and LNG at 13.8 Trillion scf
  
  
  • 2009 : BSP has spans more than 200 land and offshore structures linked by over 2,000km of pipeline, recovering oil and gas from 4,700 reservoirs and producing through 750 wells and within this 80 years, BSP has produce 6 billion barrel of oil
  • To date : A lot of advanced Technology has been brought to the country: such as fish hook wells to reach subsea reservoir, snake wells that weave several kilometers underground pockets of oil and gas and smart technologies which allows to monitor and control the operation , in real time from a comfort place in the office

 || The End ||

References:

• 
  
  
  G.C.Harper, 1975, The Discovery and Development Of The Seria Oilfield,
• OOI Keat Gin, 2004, South East Asia, A Historical Encyclopedia, From Angkor Wat to West Timor, ISBN 1-57607-770-5, Google Book, page 276-277, http://books.google.com.bn/books?id=QKgraWbb7yoC&lpg=PP1&hl=en&pg=PR4#v=onepage&q=&f=false
• Petroleum Brunei, News and Event, PB Website, retrieved on 14^th October 2009, http://www.pb.com.bn/news.asp
• Borneo Bulletin dated Apr 18^th 2009, Ultra Modern Platform For New Oil Field,Brunei FM, retrieved on 29^th October 2009, http://news.brunei.fm/2009/04/18/ultra-modern-platform-for-new-oil-field/
  

(this is my assignment report for Dr Teh - Visitng lecturer from MOE@2009)

The Discovery and Development of the Seria Oilfield

Last Sunday, I was pleasantly surprised to find this book on display at Solitude at the Mall. I remembered this book vaguely some 30 years ago when my father bought it from the publisher, Brunei Museums. I could not find the book at my parents' house anymore, someone either pinched it or we could not find it among the many things being stored at my parents' house. Sometime last week, I saw it again for the first time since, displayed with many books on Brunei at the ICC for the Raja Payung Negara Exhibition. An evil thought did cross my mind of pinching the book but the angel in me told me that I will be able to find it sooner or later. And et voila! Solitude had about a dozen of the books at only $10 each.

What's so great about 'The Discovery and Development of the Seria Oilfield' written by GC Harper? Well, first of all, this the only book in existence that I know of describing events about how the Seria oilfield (our country's lifeline) was discovered and the many developments to build up Seria up to about 1970s (the book was published in 1975 and reprinted in 1990). That said, there are many things we do not know about. For instance, did you know that oil was discovered in Miri first in 1910 and not in Seria? And that Shell first worked out of Miri to develop both the Miri and Seria oilfields? So there are a great many things we do not know about. Of course, cynics will say that this knowledge is not critical. I agree but knowing the past is fun especially for history buffs like me.

A number of new knowledge which I thought I will share with you all. The location of the first well to be drilled in Brunei specifically to produce oil was not in Seria. It was at Ayer Berkunci (around the Sungai Kebun Kampung Ayer area). It was not the 20th century but in the 19th century, albeit the last year of the 19th century - 1899. Why drill here? Oil prospectors in the 19th century already suspected that the Borneo island area had oil potential as there were many seepages (oil coming up to the surface) found in many areas. In Labuan, the search was on as early as 1866. Sometime in 1911, they started drilling in Labi and Bukit Puan in Belait. In 1923, they drilled in Tutong. But drilling continued in the Belait District until oil was discovered in Seria in 1929.

Seria was not called Seria then. The local name was Padang Berawa (Berawa is some sort of wild pigeon). Padang Berawa covers the area between Sungai Seria and Sungai Bera. And it was a swamp. The water in the area was dark red and and not suitable for human consumption. During rainy season, the whole area is submerged in water. But once oil was discovered, for some reason, the name Padang Berawa disappeared. The little river, Sungai Seria now provided the name, Seria to the newly developed town that was built for all the workers converging there.

How did they discovered the Seria oilfields? According to Salam, the Shell newspaper, a Mr. Mariott and Hon. Cochrane (later to become Lord Chochrane of Cults), both working for Sarawak Oilfields Ltd (SOL), in 1926 visited Kuala Belait which then consisted of a few fishermen's huts, on their way to visit a geologist somewhere in the Sungai Tali/Lumut area. On the way they stopped at Sungai Seria and while resting there, Cochrane smelled oil and discussed his hunch with the geologist and decided that the search for oil should be extended to the south (Seria) leading to the first well to be drilled in Seria in 1928. Oil was discovered in 1929 after the well had deepened to about 974 feet and you know the history of it since.

There were many companies searching for oil in Brunei then as compared to now. Among them include the British Borneo Petroleum Syndicate Limited, the Shanghai Langkat Company (a Singapore consortium), Nederlandsche Koloniale Petroleum Maatschappij (a Dutch company), the Anglo-Saxon Petroleum Company Limited (drilled in Tutong), Asiatic Petroleum Company (Federated Malay States) Limited and the British Malayan Petroleum Company Limited (BMPC). The latter two are Shell companies. The current Brunei Shell Petroleum Company Limited was not formed until 1957, being the first company to be registered under the new Companies Act taking over from the BMPC.

Source : http://bruneiresources.blogspot.com/2006/08/history-of-brunei-oil.html

Another Oil Exploration

Sep 27, 2010 06:21 ET

Kulczyk Oil Participating In Fourth Brunei Exploration Well

CALGARY, ALBERTA--(Marketwire - Sept. 27, 2010) - Kulczyk Oil Ventures Inc. ("Kulczyk Oil" or "KOV") (WARSAW:KOV) announces that the Markisa-1 well on Block M in Brunei Darussalam has commenced drilling. Markisa-1 is the second well to be drilled on Block M during 2010 by Kulczyk Oil and its joint venture partners. The first well on Block M, Mawar-1, was cased to total depth in mid-September and suspended pending testing.

The Markisa prospect was identified on the 3D seismic data acquired by the joint venture in 2009. The prospect is a separate undrilled fault compartment identified within the greater Belait Anticline. Given the drilling history within the Belait trend, the Markisa-1 well is considered to be low-to- moderate risk.

Markisa-1 is being drilled as a deviated well to test a sandstone reservoir that produced oil in the 1920's and early 1930s in an adjacent fault block. The well will also evaluate several secondary targets within the Miocene Belait Formation and is expected to intersect the main Belait thrust fault. The well is designed to a total depth of approximately 1,335 metres.

The well is being drilled by the MB Century Rig 104 and is expected to take approximately 28 days to drill and evaluate on a trouble free basis. In the case of a discovery, the well is likely to be suspended pending testing by another rig designed for that purpose. The well is located 30 kilometres south of the giant Seria oil field and the facilities in that area which include an oil refinery and terminal and the Brunei liquefied natural gas (LNG) facility.

The partners in Brunei Block M and in the Markisa-1 well are KOV Borneo Limited (36%), Tap Energy (Borneo) Pty Ltd (39%), China Sino Oil Co. Ltd. (21%) and Jana Corporation Sdn Bhd (4%). KOV Borneo Limited is an indirect wholly-owned subsidiary of Kulczyk Oil. The Markisa-1 exploratory well is the second of a minimum of three wells to be drilled on Block M by Kulczyk Oil and its joint venture partners in Block M during the Phase 1 exploration period ending in August 2011.

Kulczyk Oil Brunei Limited, another indirect wholly-owned subsidiary of Kulczyk Oil, has a 40% interest in Block L to the north of Block M. The first well on Block L, Lukut-1, was drilled to total depth and suspended in mid-June pending testing by a service rig. A second Block L well, Lempuyang-1, commenced drilling operations on July 15 and is currently drilling.

Also : http://www.petrostud.info/2010/07/kulczyk-oil-ventures-to-test-first.html

Source: http://www.marketwire.com/press-release/Kulczyk-Oil-Participating-In-Fourth-Brunei-Exploration-Well-WARSAW-KOV-1325109.htm

Drilling Animation : Simple

Checkout this simple animation about drilling.

Modern Oil Well service Facilities

Anduki, Belait - Minh's petroleum industry celebrated yesterday the opening of the QESS Well Services Facility and QESS Wire Wrapped Screen Facility, touted to be two of the most modern integrated well service facilities in Southeast Asia.

Present to officiate at the opening of the facilities at the Bina Light Industrial Area in Sungai Bera Industrial Park was Minister of Industry and Primary Resources Pehin Orang Kaya Seri Utama Dato Seri Setia Hj Yahya Begawan Mudim Dato Paduka Hj Bakar.

QESS Energy Support Services Sdn Bhd, incorporated in Brunei in 2003, is a locally-owned company that provides oil and gas support services like wire wrap screen, fabrication, onshore and offshore engineering services, and engineering maintenance. Wire wrap screen is a type of screen used in sand control applications.

In his opening speech, Hj Awang Hj Ali, managing director of QESS, said he hopes oil companies will continue to support local companies like QESS and provide long-term contracts to them.

After the opening ceremonies at both facilities, Pehin Dato Hj Yahya was given a tour of both plants where staff of QESS explained to the minister the -detailed operations of the company.

During the tour, the minister was showed the real-time remote operating centre, a place that shows data on activities of the rigs under Halliburton Energy Services.

Ting Heng Hie, Halliburton's business development manager in Brunei, said the centre is not just like the blackbox of an airplane - recording and monitoring all the activities happening in the rigs, but is also able to perform "remote control" of activities at the rig itself.

"We're just beginning to put this technology into use, and now we're only using its monitoring capability," Ting told reporters.

"When this operation centre matures further, we can even use it to do calibration of our oil rigs," added the business development manager.

Ting said the centre is the first of its kind in Brunei, and is also one of the most advanced operation centres in the region in terms of technology.

After touring the facility, Pehin Dato Hj Yahya witnessed the signing of a partnership contract between QESS managing director Hj Awang and Halliburton's area vice president Rao Abdullah.

Also present at the ceremonies was Llewellyn Hedgbeth, Charge d'Affaires of the United States Embassy in Brunei. -- Courtesy of The Brunei Times

[Chua Guan Cheong]

Kulczyk Oil Ventures to Test First Brunei Exploration Well

Thursday, Jun 24, 2010

Kulczyk Oil Ventures (WARSAW:KOV) ("KOV", "Kulczyk Oil" or the "Company") announces that preliminary results from analysis of drilling data and interpretation of wire line logs from the Lukut-1 well on Brunei Block L indicates a number of potential hydrocarbon-bearing zones. Consequently, KOV and its joint venture partners (the "JV Partners") have decided to proceed with a testing program.

HIGHLIGHTS

--  hydrocarbons intersected over several intervals; 

--  a testing program is expected to begin in July dependent upon the

    availability of a service rig; 

--  the drilling rig will move to Lempuyang-1, approximately 15 kilometres

    to the southwest, after it has been released from Lukut-1.

The Lukut-1 well, which commenced drilling on May 2, 2010, had an initial target depth of 2,150 metres. The well was designed to test the hydrocarbon potential of a structural feature defined by 3D seismic shot by KOV and its joint venture partners in 2009.

The well reached the target depth of 2,150 metres on May 31, 2010 and, as elevated gas readings were reported in the drilling mud, the JV Partners elected to deepen the well to 2,230 metres to facilitate assessment of a zone of interest between 2,130 metres and 2,210 metres before carrying out the wire line logging program.

Preliminary analysis of data acquired from the gas logs which evaluated the hydrocarbon content of the drilling fluid during the drilling operation showed a continual increase in gas content with indications of C1 to C5 over the interval from 1,745 metres to 2,230 metres. Gas shows were noted at 1,745 metres, 1,945 metres and from 2,150 metres to 2,185 metres. Elevated gas readings at 2,230 metres led the JV Partners to further extend drilling to 2,366 metres after running a liner to 2,230 metres.

During the drilling of the additional section elevated gas readings were also recorded from 2,295 metres to 2,317 metres but due to hole and drilling conditions this section of the wellbore was not able to be effectively cased. The well was plugged back to 2,230 metres. During the plugging back of the well the cement set up prematurely resulting in a section of tubing being left in the hole. Operations are underway to remove this impediment to the testing of the well. The Nabors 503 drilling rig will be moved off of the location and relocated to the Lempuyang-1 location once the tubing has been removed from the wellbore to allow for the testing of the zones below 2,066 metres.

Further interpretation of drilling results and a petrophysical evaluation of the wire line logs for the entire hole is progressing and will be factored in to the final design of the testing program. A smaller service rig will be sourced to undertake the testing of the well and the testing program is expected to commence in July, 2010.

The partners in Brunei Block L and in the Lukut-1 well are Kulczyk Oil (40%), AED South East Asia Limited (50%) and QAF Brunei Sdn Bhd (10%). The Lukut-1 exploratory well is the first well in a program of a minimum of four wells to be drilled in Brunei by Kulczyk Oil and its joint venture partners in 2010. Two of the wells, Lukut-1 and Lempuyang-1, are located on Block L (KOV 40%) and the two additional wells will be drilled on Block M (KOV 36%) to the south. All four of the wells will evaluate prospects identified by newly-acquired 3D seismic.

Assets of Kulczyk Oil

Kulczyk Oil is an international upstream oil and gas exploration company with a diversified portfolio of projects in Brunei, Syria and Ukraine and with a risk profile ranging from exploration in Brunei and Syria to production and development in Ukraine.

In Brunei, KOV owns working interests in two production sharing agreements which gives the Company the right to explore for and produce oil and natural gas from Block L and Block M. KOV owns a 40% working interest in Block L, a 2,220 square kilometre (550,000 acre) area covering onshore and offshore areas in northern Brunei and a 36% working interest in Block M, a 3,011 square kilometre (744,000 acre) area onshore in southern Brunei.

In Ukraine, KOV owns an effective 70% interest in KUB-Gas LLC. The gas producing assets of KUB-Gas consist of 100% interests in four licenses near to the City of Lugansk in the northeast part of Ukraine.

In Syria, KOV holds a direct 75% interest in a production sharing agreement that gives it the right to explore for and produce oil and natural gas from Block 9, a 10,032 square kilometre area in northwest Syria.

The main shareholder of the Company, Kulczyk Investments S.A., increased its holdings in the Company through participation in the initial public offering of the Company on the Warsaw Stock Exchange in May 2010 and the partial conversion of a debenture (the "KI Debenture") and owns approximately 48.55% of the issued common shares as of the date of this news release. Kulczyk Investments S.A. is an international investment house founded by Polish businessman Dr. Jan Kulczyk.

Source :

1. http://www.youroilandgasnews.com/kulczyk+oil+ventures+to+test+first+brunei+exploration+well_50952.html