Despite substantial gains in Brunei-Malaysia, Taiwan, India, and Japan, oil production from non-Communist countries of the Far East decreased from 722,140 b/d in 1965 to 689,309 b/d in 1966, mainly because Indonesia's output dropped from 547,945 b/d in 1965 to 463,000 b/d in 1966. Geological and geophysical activity increased to more than 700 party-months in 1966, but exploratory and development drilling declined, Japan experiencing the greatest reduction in this field. The number of dry holes increased in 1966, accounting for about a third of the holes drilled. In 1966, as in 1965, Taiwan reported the largest percentage increase in crude-oil and gas production.

ACKNOWLEDGMENTS

Information on petroleum developments in the Far East is gratefully acknowledged from the following sources.

BRUNEI-MALAYSIA
Asiatic Petroleum Corp., New York Societe Nationale des Petroles d' Aquitaine, Paris
Sunray DX Oil Co., Tulsa
Teikoku Oil Co., Ltd., Tokyo
Harry Wassall & Assoc., Geneva

BURMA
General Exploration Co., Los Angeles
Harry Wassall & Assoc., Geneva

CHINA, TAIWAN
Chinese Petroleum Corp., Taipei, Taiwan
Harry Wassall & Assoc., Geneva

INDIA
Harry Wassall & Assoc., Geneva

JAPAN
Idemitsu Kosan Co., Ltd., Tokyo
Geological Survey of Japan, Tokyo
Japan Petroleum Exploration Co., Ltd., Tokyo
Natural Gas Mining Assoc., Tokyo
Nippon Mining Co., Ltd., Tokyo
Teikoku Oil Co., Ltd., Tokyo
Harry Wassall & Assoc., Geneva

PAKISTAN
Ministry of Industries and Natural Resources, Islamabad
Burmah Oil Trading Ltd., London
Harry Wassall & Assoc., Geneva

PAPUA-NEW GUINEA
Continental Oil Co. of Australia Ltd.
Marathon International Oil Co., Findlay, Ohio
Phillips Petroleum Co., Bartlesville, Okla.
Societe Nationale des Petroles d' Aquitaine, Paris
Harry Wassall & Assoc., Geneva

PHILIPPINES
Harry Wassall & Assoc., Geneva

PORTUGUESE TIMOR
Timor Oil Ltd., Sydney

INTRODUCTION

For the purpose of this report, the Far East is defined as the area from West Pakistan eastward, including Japan and the Territory of New Guinea, but excluding Australia and New Zealand (Fig. 1). Petroleum developments in this area are reviewed alphabetically by country.

Exploratory activity other than wildcat drilling (Table I) was at a higher level in 1966 than in 1965, principally because of increased efforts in Brunei-Malaysia, Taiwan, and Portuguese Timor. In India and Japan exploratory work is estimated to have remained at its previous level, whereas in Indonesia, Papua, and New Guinea it declined somewhat. The most drastic cutbacks were in Pakistan and the Philippines. About 720 party-months of geological and geophysical work was conducted in 1966, whereas in 1965 the revised estimate is 615 party-months.

On the other hand, fewer exploratory and development wells were completed in 1966 compared with 1965, primarily because of a substantial cutback in drilling in Japan (Table II). Although drilling statistics for India are not available, activity in 1966 is presumed to have continued at about the same level as in 1965. The total footage for the Far East for the year was 1,170,429, 30% less than in the previous year. Regardless of the decrease in activity in Japan, this country again led with 153 wells totaling 919,050 ft.

In 1966, oil production in non-Communist countries of the Far East was estimated at 251,598,000 bbls, down slightly from 1965 (Table III). Although substantial percentage increases were noted in Brunei-Malaysia, Taiwan, India, and Japan, production from Indonesia was reported to have declined sharply. Decreases also were noted in Burma and Pakistan. Once again, Taiwan showed the most striking increase with crude-oil production up 72% and gas production, about 44%.

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Fig. 1. FAR EAST Sedimentary Deposits and Oil Fields

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Fig. 1. Continued. See caption on page 1650.

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Table I. GEOLOGICAL AND GEOPHYSICAL PARTY-MONTHS IN FAR EAST IN 1966

Table II. WELL COMPLETIONS IN FAR EAST IN 1966

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BRUNEI-MALAYSIA

Production of crude oil and natural gasoline rose about 18% in Brunei-Malaysia from 81,885 b/d in 1965 to 97,273 b/d in 1966 (Table IV). Exploratory drilling also increased in 1966, because 9 wells were drilled (Table V); no wildcatting was done in 1965. Fifteen development wells were drilled in 1966, 13 of which were producers, compared with 18 wells in 1965, 15 of which were productive.

In March, 1964, a subsidiary of Clark Oil & Refining Co. acquired rights to 9,600 sq kms in the Tutong district west of the Royal Dutch Shell group's Jerudong field in Brunei. In March, 1966, a subsidiary of Sunray DX acquired a 50% interest in this tract and became operator for a group consisting of itself, Superior Oil Co. (25%), and Clark Oil & Refining Co. (25%). Five party-months of seismic work was done during the year, and during 1967 Sunray plans to conduct 12 party-months of additional seismic effort and to fly an aeromagnetometer survey.

Aquitaine Petroleum Co. (South East Asia), a subsidiary of the Societe Nationale des Petroles d'Aquitaine (SNPA), a French company, holds an oil-prospecting license (2,640 sq mi), granted in 1965 in the offshore northeast of Sabah. Exploratory work during 1966 consisted of 1½ party-months of surface geological work in Sabah. The company plans to continue geological studies in this area in 1967.

Sabah Teiseki Oil Co., a subsidiary of the Japanese

Table III. CRUDE-OIL PRODUCTION IN FAR EAST IN 1965 AND 1966

Table IV. OIL PRODUCTION IN BRUNEI-MALAYSIA IN 1965 AND 1966

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Teikoku Oil Co., in 1966 applied for an additional 3,332 sq mi around its oil-prospecting license of 135 sq mi in the Simandlan-Sebatik Island area. At year end, this application was still pending. During 1966 three structure holes, totaling 8,576 ft, were drilled on Sebatik Island and the operator announced plans for a 4-6-well exploratory program for 1967.

Esso Exploration Inc. acquired an oil-prospecting license of 3,170 sq mi late in 1966 in the offshore northwest of Sabah and seaward of the Royal Dutch Shell group's holdings. This increases Esso's Sabah holdings to 11,770 sq mi. Esso reportedly had one geological party working in Sabah during the year.

The Royal Dutch Shell group reported 1.2 party-months of field mapping, 26.3 party-months of seismic work, and 4 party-months of other geophysical work in 1966. Two wildcat wells were drilled in Brunei, one of which was productive, and 13 development wells were completed as producers. In Sarawak, 3 of 7 wildcats were completed as producers, and 2 development wells were abandoned as dry.

BURMA

In 1966, the People's Oil Industry, a Burmese government agency, reportedly had 3-4 rigs active in wildcat drilling, 2 rigs active in development work in the Chauk/Lanywa fields, and 2 or 3 rigs active in the Yenanguang and Yenangyat fields; however, this report has not been confirmed. No additional information has been made available on the status of the oil discovery at Taunggyigwe, 16 mi south of Prome, on the east side of the Irrawaddy River, nor on the reported discovery at Myanaung on the west side of the Irrawaddy, 30 mi south of Prome where 4 wells were reported to be producing 600 b/d at the end of 1965.

Crude-oil production was estimated at about 10,500 b/d for 1966, and natural gas production was estimated at 8 MMcf/d.

CHINA, MAINLAND

Information on developments in Communist China in 1966 was not available. One unconfirmed press report, however, indicated that crude oil production is in the order of 200,000 b/d. The center of crude-oil production is at Taching, in northern China.

CHINA, TAIWAN

The most significant development in 1966 was the completion of the Paoshan No. 3 wildcat, which on a production test flowed 1,000 b/d with

Table V. EXPLORATORY WELLS IN BRUNEI-MALAYSIA IN 1966

Table VI. EXPLORATORY WELLS IN TAIWAN IN 1966 (OPERATOR: CHINESE PETROLEUM CORP.)

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Fig. 2. TAIWAN SKETCH MAP SHOWING PETROLEUM EXPLORATION ACTIVITIES

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2.5 MMcfg/d from a zone at 12,000 ft (Fig. 2). Two additional wells are planned on this structure, which is northeast of the Chinshui gas field. Five other wildcat wells were abandoned during the year. Total wildcat footage for 1966 was 81,552, up 19% from 1965. Eight wildcats were still drilling at year end (Table VI).

Five successful development gas wells were drilled in 1966, 2 in Chinshui gas field and 3 in Tiehchenshan gas field. At year end, 2 wells were still drilling in Chinshui. Total development footage for the year was 45,178, virtually the same as in 1965.

Other exploratory activity included: 7 surface-geological parties mapped a 528-sq-mi area in western Taiwan during 1966 (41.5 party-months); 2 seismic crews (24 party-months) shot 458 line-mi (2,763 shot points) in western Taiwan; and 1 gravity party working on Penghu Island and in western Taiwan occupied 6,768 stations during an 8-month period.

Natural gas production in 1966 was 1,570 MMcf, approximately 44% higher than in 1965. Crude-oil production increased 72%, reaching a new high of 226,000 bbls for the year.

INDIA

Under the Defense of India Rules, details of exploration and production are considered confidential and, therefore, operators in the country have been unable to provide authoritative information. The following unconfirmed items have been gleaned from press reports.

The Oil and Natural Gas Commission (ONGC), a government agency, conducted the major part of India's exploration and production effort in 1966. Reportedly, 10 rigs were engaged actively in exploratory drilling during the year with half of these concentrated in the Cambay basin (Fig. 3), where an oil discovery was made at Chanpir Point No. 1 (T.D., 7,940 ft), near the village of Kuber, about 5 mi west of Jambusar. A second well, on the nearby Dhader River, also was reported to have found oil. A third oil well, which may be an extension of the Kalol field, was reported near Dholka, about 20 mi northeast of the Navagam oil field. Other exploratory drilling activity was reported in Rajasthan, Punjab, Uttar Pradesh, Kashmir, West Bengal, and Assam.

Ten rigs reportedly were engaged in development work in the Ankleshwar, Navagam, and Kalol fields in the Cambay basin. Another 5 rigs were believed to be active during the year in Assam, in the Rudrasgar and Lakwa fields.

Oil India, Ltd. (50% Indian government, 50% Burmah Oil), was reported to have had 2 or 3 rigs active in development work in the Moran and Nahorkatiya fields. In 1966, Oil India drilled 289,737 ft which included 3 wildcat wells and 24 development wells.

ONGC was reported to have had 17 geological field parties active during the first half of 1966 in the states of Gujarat, Himachal Pradesh, Kashmir, Madras, Madya Pradesh, Punjab, Tripura, and Uttar Pradesh. Only 15 parties were in the field during the last 2 months of the year when activity was resumed following the monsoon season. During the first part of the year ONGC was said to have had 26 seismic crews (of which 2 were marine) and 10 gravity-meter--magnetometer parties working in the states of Andhra Pradesh, Assam, Bihar, Kashmir, Madras, Orissa, Punjab, Rajasthan, Uttar Pradesh, and West Bengal.

Crude-oil production in 1966 reportedly totaled 34,310,000 bbls (4.6 million tons) an increase of more than 50% from the 20,993,100 bbls (2.9 million tons) reported for 1965. Nearly half of this amount came from ONGC's Ankleshwar field in the Cambay basin, where production averaged about 47,000 b/d. ONGC also put the Rudrasgar field on trial production at the rate of 600 b/d. Oil India, Ltd., produced 15,877,500 bbls (2,112,650 tons) for a daily average of 45,000 bbls, the bulk of which came from the Nahorkatiya field with lesser amounts coming from the Moran field. Assam Oil was said to have produced at the estimated rate of 3,000 b/d from the Digboi field. Gas production for the year was calculated at 30 MMcf/d.

INDONESIA

Although Caltex completed 11 successful development wells in the Duri field in 1966, production there continued to decline, from 56,179 b/d in 1965 to 47,857 b/d in 1966. In contrast, production of 34° API oil from the Bekasap field nearly doubled, rising from 16,973 b/d in 1965 to 31,948 b/d in 1966. Production from the Minas field decreased slightly, dropping from 247,762 b/d in 1965 to 222,165 in 1966. Two shut-in fields were put on production for the first time during 1966: Pematang, at the rate of 808

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Fig. 3. INDIA EXPLORATORY DRILLING 1966

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b/d of 30° API oil, and Pungut, at the rate of 1,985 b/d of 39° API oil. Caltex's total crude-oil production for the year averaged 304,763 b/d, somewhat less than the 320,914 b/d reported for 1965. Caltex drilled 2 exploratory wells during the year (Fig. 4). Batang No. 1, located 14½ mi north-northwest of Duri, was spudded on August 10 and abandoned as dry on August 25 at a total depth of 1,453 ft. Mesim No. 1, located on the southeast tip of Rupat Island, was spudded October 14 and abandoned at a total depth of 3,591 ft on November 20.

Other exploratory work during the year included 6 party-months of surface geological work and 10 party-months of gravity-meter surveys.

Stanvac abandoned a wildcat well in central Sumatra, Segat No. 1-C, in September at a total depth of 3,845 ft, after two previous attempts to test this anticline were unsuccessful. The first well blew out and caught fire in July, 1965, and the second test was junked and abandoned. Segat No. 1-C was spudded August 6.

Other exploratory activity by Stanvac was limited to 3 party-months of geophysical work in the early part of the year. Five development wells totaling 13,600 ft were completed successfully during the year in south Sumatra. Stanvac's total production for the year was 20,900,000 bbls, a daily average of 57,300 bbls, almost the same as that reported for 1965. Plans for 1967 include the drilling of 4 exploratory and 11 development wells.

P.N. Permina, in conjunction with Asamera, reportedly drilled 5 development wells in the Guedongdong field, 4 of which were successful. Two of the wells are said to have penetrated 40-50 ft of oil-bearing sandstone at a depth of about 2,900 ft. Initial production rates were in excess of 1,000 b/d of 55° API oil. Development work continued in the Rantau and Pulau Tabuhan oil fields, in conjunction with North Sumatra Oil Development Corp., a Japanese company. To date 99 wells have been drilled in these fields, 92 of which were completed as producers, and cumulative production from these wells had reached about 8.9 million bbls by the end of 1966. Permina and North Sumatra Offshore Petroleum Exploration Co., another Japanese firm, conducted a 1-month aeromagnetometer survey covering about 5,791 sq mi in the north Sumatra offshore on acreage acquired from Refining Associates. Permina-Refining Associates reportedly completed Gebang No. 8 as an oil well from a 28-ft sandstone at 3,471 ft. Permina is also reported to have conducted 12 party-months of seismic work in the Djambi area in southern Sumatra.

Total production in 1966 for all of Indonesia was estimated at 463,000 b/d, about 15% lower than that reported for 1965.

JAPAN

Exploratory drilling (Tables VII-VIII), as in 1965, was concentrated in Niigata Prefecture, and resulted in the discovery of 2 new gas fields: Matsuzaki, in the eastern suburb of Niigata, and Hirakida, about 22 mi east-northeast of Niigata. A 15,607-ft deep test in the Higashi-Niigata gas field found several deeper zones with good gas shows, but the operator was unable to test because of mechanical difficulties resulting from high pressures. The well was plugged back, however, and completed as a gas well at 9,514 ft. By year end, the Ogata No. 1 wildcat had encountered oil and gas at 10,171 ft in the new zone discovered by the Higashi-Niigata deep test. The operator plans to complete the well early in 1967 as a new-field wildcat. Four wells were drilled in the Niigata offshore during he year, and two were completed as outpost gas wells. Several shallow exploratory wells (1,300-2,000 ft) were drilled in 1966 in the Joban coal-field area in Fukushima and Ibaragi Prefectures; however, detailed information is not available. The total wildcat footage reported for 1966 was 460,063 ft, a slight increase over that reported for 1965.

Development drilling, like wildcatting concentrated in Niigata Prefecture, was cut back sharply to 506,333 ft, a 38% reduction of the 1965 figure (Table IX).

Table VII. SUMMARY OF EXPLORATORY WELL COMPLETIONS IN JAPAN IN 1966

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Fig. 4. SUMATRA EXPLORATORY DRILLING 1966

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Table VIII. EXPLORATORY WELLS IN JAPAN IN 1966

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Table VIII. Continued.

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Table VIII. Continued.

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Table VIII. Continued.

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Crude-oil and natural gasoline production reached 5,463,180 bbls in 1966, approximately 15% above the amount reported for 1965 (Table X).

Natural gas production in 1966 was 64,509,258,954 cu ft, a slight increase over the 62,860,992,320 cu ft reported for 1965 (Table XI).

Table IX. SUMMARY OF DEVELOPMENT WELL COMPLETIONS IN JAPAN IN 1966

Table X. CRUDE AND NATURAL GASOLINE PRODUCTION IN JAPAN IN 1965 AND 1966

Table XI. NATURAL GAS PRODUCTION IN JAPAN IN 1966

Table XII. PARTY-MONTHS OF GEOLOGICAL AND GEOPHYSICAL WORK IN JAPAN IN 1966

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Exploratory work other then drilling continued at about the 1965 level (Table XII).

PAKISTAN

Although the Oil and Gas Development Corp. (OGDC), a government agency, increased its geological and geophysical exploratory effort in 1966 to 73 crew-months (up from 64 crew-months in 1965), all other operators combined conducted only 2 crew-months of this work, resulting in an overall decrease from 85.8 party-months in 1965 to 75 party-months in 1966 (Table XIII).

Exploratory drilling was reduced (Table XIV, Figs. 5-6), from 9 wildcats in 1965 to 6 in 1966, 5 of which were drilled by OGDC. Attock Oil Co., through its subsidiary Pakistan Oilfields Ltd. (POL), participated with Pakistan Ltd. (PPL) in the drilling of the Adhi No. 3 wildcat, which was apparently off structure and abandoned as dry. During 1967, OGDC plans 2 wildcats in East Pakistan and 2 in West Pakistan.

Fig. 5. WEST PAKISTAN AND AFGHANISTAN Exploratory Drilling 1966

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POL also intends to drill a wildcat in 1967 on the Meyal structure, about 12 mi northwest of the Dhulian field. Total exploratory footage for 1966 was 47,955.

Eight development wells were drilled in 1966 compared with 6 in 1965 (Table XV). Three of these were successful gas wells in Pak Stanvac's Mari field where 1 well was abandoned as a dry hole. Pak Stanvac plans to continue development of the Mari field, which still is not on production. Attock Oil Co. spudded a single development well in the Dhulian field on September 12, 1965, completing it as an oil well on June 6, 1966. PPL completed 2 development gas wells in the Sui field during the year and plans call for 1 development well there in 1967. OGDC completed 1 development well, Sari Sing No. 2, in 1966 and at year end were drilling ahead on Sari Sing No. 3. Total development footage for the year was 40,389.

A total of 3,252,441 bbls of crude-oil was produced in Pakistan in 1966, a 6% decrease from the 3,449,792 bbls produced in 1965 (Table XVI). No production was reported from the Karsal field (jointly operated by POL and PPL)

Table XIII. PARTY-MONTHS OF GEOLOGICAL AND GEOPHYSICAL WORK IN PAKISTAN IN 1966

Table XIV. EXPLORATORY WELLS IN PAKISTAN IN 1966

Table XV. DEVELOPMENT WELLS IN PAKISTAN IN 1966

Table XVI. OIL AND GAS PRODUCTION IN PAKISTAN IN 1965 AND 1966

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in 1966 where production in 1965 had declined to 14,182 bbls. Attock Oil produced a total of 2,787,634 bbls from Dhulian Balkassar and Khaur/Joya Mair fields, where POL's share of production from the Dhulian field in 1966 was 366,033 bbls. PPL's share of production from the Balkassar field amounted to 567,576 bbls, a decrease of about 1.1% from 1965.

Natural gas production increased about 4½% from 67,400 MMcf (including the production of associated gas from the Dhulian oil field) to 70,542 MMcf in 1966 Gas production from the Sylhet field averaged 15.2 MMcf/d and 19,925 bbls of condensate (which was sold locally after distillation), a decrease of 3.8% from 1965. Daily gas production from Chhatak averaged about 1.5 MMcf, a slight decrease from 1965.

PPL reduced its prospecting license areas by 105.13 sq mi during the year, retaining 2.98 sq mi, covered by the Chak Naban license. PPL's acreage under mining-lease was reduced by 8.78 sq mi, and the company now holds 46.3 sq mi in

Fig. 6. EAST PAKISTAN Exploratory Drilling 1966

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two blocks: Sylhet, 26 sq mi, and Chhatak, 20.3 sq mi.

Pak Sun Oil Co. released all oil-prospecting licenses, covering 3,518 sq mi, on May 8, 1966. Sun did not carry out exploration work during the year.

Shell Oil Co. plans seismic work and development drilling in the Habiganj field in East Pakistan in 1967.

PAPUA, NEW GUINEA, NEW BRITAIN, AND NEW IRELAND

During 1966, five different operators (six companies) renewed licenses of permits-to-prospect covering 47,004 sq mi in Papua and Australian New Guinea. Three companies were awarded 16,842 sq mi in new licenses or permits-to-prospect during the year.

Oil Search Ltd., operator for a group consisting of itself (71%) and Mobil/BP (29%), renewed rights to 11,530 sq mi in Papua, but relinquished a 2,148-sq mi permit-to-prospect; however, an 842-sq-mi license in the same area was granted at the same time. Three crew-months of seismic work were done during the year, and plans for 1967 involve additional seismic work and the drilling of 2 wildcat wells. In addition, BP plans to operate a geological field party in northern Papua for the group during 1967.

Phillips Petroleum Co. (25%), operator for a group consisting of itself, Sunray DX Oil Co. (25%), Anacapa-Richfield Corp. (20%), and Canadian Superior Oil (Aust.) Pty. Ltd. (30%), renewed rights to 4,500 sq mi during the year, and conducted 3 crew-months of seismic work. Plans for 1967 call for exploratory drilling operations in the Gulf of Papua.

Marathon Petroleum Australia Ltd., operator for itself (50%) and Continental Oil Co. of Australia (50%), renewed exploration rights to 9,650 sq mi in Papua in 1966 and carried out 7½ party-months of seismic work during the year. Plans for 1967 include 12 crew-months of seismic surveys, 2 months of geological field work, and the drilling of a 10,000-ft wildcat by Nakoro Petroleum Co., an independent operator, in return for a 50% interest in 200 sq mi in eastern Papua.

In November, 1966, Continental Oil Co. of Australia, operator for itself (50%) and New Guinea Cities Service (50%), acquired rights to 10,000 sq mi in two blocks on the islands of New Britain and New Ireland. The company also renewed rights to 9,960 sq mi in Australian New Guinea. During 1966, 8 party-months of geological field work were carried out. Plans for 1967 call for an additional 8 party-months of field geology and a photogeologic study of New Britain and New Ireland.

Australian Aquitaine Petroleum Pty. Ltd. (65%), a wholly owned subsidiary of the French firm, Societe Nationale des Petroles d'Aquitaine (SNPA), and Japan Petroleum Exploration Co., Ltd. (JAPEX) (35%), renewed their rights to 10,000 sq mi in Australian New Guinea in 1966. During the year, 5 party-months of geological field work was carried out and plans for 1967 call for a similar program.

PHILIPPINES

Exploratory activity continued to drop in the Philippines during 1966. Amoseas conducted month of marine seismic work on its concessions west of Palawan Island. Visayan Exploration Inc., a subsidiary of Esso, carried out seismic work on Bantayan Island, and conducted 8 party-months of geologic field work on the islands of Bohol, Panay, Mindanao, and Leyte. Teikoku Oil Co., Ltd., a Japanese company, completed 3 party-months of geologic field work on Negros and Mindanao Islands.

PORTUGUESE TIMOR

Timor Oil Ltd.'s 6,851-sq-mi prospecting license covering most of Portuguese Timor expired on December 31, 1966. This Australian company is currently negotiating with the Portuguese government to renew the concession for 4 additional years. Twelve months of geologic field work was reported in 1966.

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