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...