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State oil firm ramping up exploration works
Sat, Mar 20, 2010
The Brunei Times/Asia News Network

BRUNEI National Petroleum Company (PetroleumBRUNEI) is ramping up exploration activities with drilling works in Blocks L and M scheduled this year and a couple of seismic surveys slated next year to identify more deposits.

PetroleumBRUNEI chief petroleum engineer, Pg Hj Mohd Amirrudin Pg Hj Razali, told The Brunei Times, "The main purpose of PetroleumBRUNEI is to secure oil and gas industry and reserves in Brunei and we are already heading towards that.

"This year a lot of things are happening apart from drilling and we have two wells in L and M, this year and next year. We are optimistic and are moving towards a promising year," he added.

AED South East Asia Limited yesterday announced that the exploration drilling at Lukut-1 and Lempuyang-1 wells will begin within the next few months at Mukim Kiudang, in Tutong.

In a presentation by AED, the company's procurement and contracts officer, Zulasmin Noor, said that the Lukut-1 well will be drilled in the second week of April until the middle of May and Lempuyang-1 well, from the second week of June until August.

AED Country Manager Trevor Slater said that this is an exploration well and they are in the first stage where they drill wells to identify hydrocarbons which may have either oil or gas, or both.

"After that, we go through the process of evaluating the quality of reserve or resource then develop some form of feasibility study and a pre-development plan," he said.

Slater added that this exploration stage, if successful, might lead to other drilling and future plans.

"The seismic was done last year, and the first part of the exploration process is to identify the targets and suitable areas for drilling," he said.

Pg Hj Mohd Amirrudin said that from exploration, the company can then move into production, based on what they find.

"This phase confirms what is available and then we evaluate the situation following an appraisal stage, which you will try to determine the economical situation," the government official said.

Slater added the construction works can take up to six months and the actual drilling takes 30 to 40 days.

Asked how soon the hydrocarbons can be extracted for commercial purposes, Slater said that it is still too early to determine.

"We really need to understand the situation and these wells will provide the answer to many questions. We need to understand the nature of the reservoir that we'll potentially produce," he explained.

Pg Hj Mohd Amirrudin agreed that it is too early to say when oil or gas can be extracted and echoed Slater saying that success in the exploration stage will determine whether or not you can get productive wells.

A press conference was held yesterday at the Kiudang Primary School for the residents of Kg Padnunok to prepare the residents for any upcoming interruptions through the construction works.

PetroleumBRUNEI manages and regulates Block L, which covers an area of 2,253 sq km, which includes Brunei-Muara, Tutong and part of Belait and Temburong.

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