Abstract

Two new proven petroleum systems have been discovered in SE Asian exploration sphere within the last two year period namely the DW Sarawak Paus-1 discovery drilled by Newfield in April 2009 in deepwater Malaysian Block 2C which proves the effective nature of at least one of the graben systems in the disputed portion of the South China Sea and the shallow water White Shark-1 well drilled by PXP in Vietnamese Block 124 in December 2009 that proves an effect oil charge system in the Phu Khanh Basin. In addition important extensions to proven but underexplored petroleum system have been made. The DW Qiongdonnngan Basin Lingshui 22-11 well drilled by BG in December 2010 in Block 61/11, offshore Hainan Island was pronounced a gas discovery although no further details have been announced. The Genting Oil Asap-1 well in Kasuri PSC, west Papua, Indonesia is believed to have discovered an important onshore extension to the BP's giant Tangguh Field LNG development in the adjacent Muturi PSC. Anadarko's Badik-1 well in the shallow water Nunukan PSC in the NE Kalimantan Tarakan Basin encountered 133 feet of net oil and gas pay, and is rumored to be the most significant oil discovery in Indonesia in recent years. ENI's Janggrik-1 oil discovery in the Muara Bakau PSC has opened up a potential new Pliocene play fairway in the southern outboard part of the Kutei Basin. Exxon Sultan-1 in the DQ Mandar PSC discovered dry gas in a carbonate pinnacle reed located on a major basement high, thereby proving a working petroleum system on the NE margin of the South Makassar Basin. However, the follow up Kris-1 downflank test on the same basement high appears to establish the Sultan-1 discovery as a non-commercial with little follow up potential. Further discoveries have been made following up on the Husky July 2006 deep water Pearl River Mouth Liwan 3-1-1 and commercialization of these resources looked imminent. Other key well tests that are still mainly tight but based on rumor are considered to be disappointing include 4 exploration wells drilled by Tap (SC41) and Exxon (SC56) in the Philippine deepwater portion of the Sandakan Bain where wells have failed to prove an oily petroleum system. It is understood that the SC41 portion of the basin also had reservoirs issues due to its paleogeographic slope position. 3 wells drilled in the deep water North Makassar Straights/West Sulawesi by Exxon (Rangkong-1), Anadarko (Pancang-1) and Marathon (Bravo-1) failed to prove a working petroleum system, although the latter well at least appears to have intersected a porous carbonate buildup as prognosed. Meanwhile Tately is currently drilling an onshore extension of the postulated Eocene petroleum system with its LG-1 well located in the Budong-Budong PSC. 1 exploration well drilled by ConocoPhillips in the Paleozoic Arafura Basin on the extension of the Australian Platform into eastern Indonesia is rumored to have encountered tight reservoir. The Salamander Bang Nouan-1 in the Khorat Basin extension into Laos and the Salamander offshore Vietnam Block 31 wells were disappointments. The next 2 years will have a number of key exploration tests which should include drilling with the deepwater Brunei licenses adjacent to the large Kikeh and Gumusut 2002/3 discoveries respectively that has been delayed due to a border dispute between Brunei and Malaysia. Further drilling within the Makassar straits area will target shallower and different petroleum system to those that may have failed in the initial exploration efforts. Exxon will drill within the Cendrawasih Bay region of Irian Jaya. A large DW exploration program planned by Niko covering around ten of their eastern Indonesia and DW Kutei basin blocks. The planned Talisman (ex CoP) drilling in the deep water portion of the Nam Con Song Basin. The planned Lundin drilling in the Penyu Basin targeting deeper objectives targeting deeper objectives to those that were previously drilled in the initial exploration efforts. The large exploration drilling program planned by Zaratex in the Lhokseumawe PSC, offshore Aceh, will target a number of independent play types including carbonate buildup analogues to the adjacent onshore Arun giant gas condensate field and clastic turbidite plays. The increasing interest in unconventional gas, mostly coal bed methane, is predominantly in Indonesia but also in Vietnam. Other political changes of note that might affect exploration activity within the region in the next few years include the possible democratization and opening of Myanmar. A resolution between Cambodia and Thailand regarding their disputed zone that would allow for exploration and development of the significant gas and condensate resources that will be present will need to be made. A solution to the multi-country dispute in the South China Sea, and the Malaysia/ Indonesia overlapping claims in NE Boreo and the deepwater Myanmar/Bangladesh overlapping claims will need to be made. And finally slightly further afield but relevant to SE Asian geology and exploration the following areas will also have exploration activities that may of note, Woodside's commitment well in the deep water Ulleung Basin of South Korea and the 3D and subsequent drilling of the extensive 3D datasets now being acquired and processed in the Gulf of Papua. SE Asia is a complex geological area that still offers primary exploration opportunities within untested plays and basins and the future looks bright.

Keywords: Value Creation • IRR • Suban Field • Vorwata Field • Abadi Field • Wiriagar Deep Field