NEWS Study outlines SE Asia development projects

Fifty-three oil and gas fields in Southeast Asia (59769 bytes) are either under development or likely to be developed in the next 6 years, says a tally by Wood Mackenzie Consultants Ltd., Edinburgh. The analyst reckons these fields will yield more than 2.2 billion bbl of liquids and 51 tcf of gas with a total capital outlay of about $25 billion in current dollars. Wood Mackenzie classifies another 47 discoveries as possible developments. But they are not sufficiently advanced for development to begin before the turn of the century. Indonesia has the largest number of current, probable, and possible developments with 34. Malaysia is second with 22. China has 13 offshore developments lined up. The firm did not include onshore developments because they are controlled exclusively by China National Petroleum Corp.

Offshore focus

Wood Mackenzie's figures show conventional fixed platform structures make up the bulk of the current and probable developments at 68%, while only 14% of the total are onshore. The firm said, "With recent advances in subsea and multiphase flow technology and the current trend to search for oil in deeper water and more frontier areas, we expect to see the number of developments using subsea completions and/or floating production systems to increase." Gas development projects are becoming increasingly popular. A growing domestic market in Java and continuing demand for liquefied natural gas in the region have spawned several new gas projects in Indonesia. Thailand, Myanmar, and Philippines also have a large number of gas oriented projects. Despite expected development projects, total average oil production in Southeast Asia will fall 24% by 2002 from about 5.7 million b/d this year. However, the region's gas production will rise 54% by 2002 from a total average of 12 bcfd this year. Wood Mackenzie said, "The anticipated increase in gas production is primarily due to an expected increase in the use of gas in the region's major importing countries, Japan, South Korea, and Taiwan and rapid growth in domestic demand in the traditional exporting countries, Indonesia and Malaysia, and also in China." Exxon Corp.'s development of giant Natuna D gas field off Indonesia is listed by Wood Mackenzie as only a possible development. This 46 tcf project is not expected to go on stream until at least 2010 because the go-ahead hinges on securing firm contracts for LNG exports. Natuna capital investment is expected to amount to $35-40 billion. Copyright 1995 Oil & Gas Journal. All Rights Reserved.