First oil from Dua, Vietnam

Oil production began today at the Dua oil project, operated by Premier Oil offshore Vietnam, 40 years after the field was discovered.

The Dua field discovery well, Dua-1X, was drilled in 1974 and flowed 1500 bo/d.

Premier Oil acquired a 75% interest in the production-sharing contracts for Blocks 12W and 12E in the Nam Con Son basin from Delek Energy Systems Ltd. in May 2004. Premier acquired a 3D seismic survey over the area in 2005, farmed out part of its interest to Santos in April 2006, then drilled a successful appraisal well, Dua-4X, completed in June 2006, downdip of the discovery well, followed by a sidetrack well, in the northern fault block of Dua.

Premier then drilled the Dua-5X well on Block 12E to evaluate the adjacent southern fault block, tested in October 2006. The primary reservoir target flowed at 5543bo/d plus 6.76 MMscfd of natural gas through a 128/64in. choke. A deeper secondary reservoir flowed at 247 bo/d through a 28/64in. choke. Neither zone produced water.

The tie-in from Dua to the Chim Sáo field in Block 12W was approved by the Government of Vietnam in December 2011. The project was sanctioned in August 2012.

Subsea installations were completed in 2013 and tied back to the Chim Sáo FPSO via flowlines and umbilicals.

Premier Oil drilled three production wells at Dua, beginning in February 2014, using the new-build West Telesto ILC jackup, operated by Seadrill Ltd.

The gross production rate from the Dua wells is estimated to average 8000 bo/d for the first 12 months of production. Sufficient oil and gas handling capacity is available on the Chim Sao FPSO to accommodate both Chim Sao and Dua at full production.

Partners

John Anderson, Santos Vice President Asia, WA&NT, said Dua first oil represented the delivery of another project into the company’s expanding Asian portfolio.

“We congratulate our operator Premier Oil for delivering this key milestone for the joint venture. Dua is a high-value brownfield addition to Santos’ portfolio and provides a boost to our existing oil production in Vietnam through the Chim Sao facilities,” Anderson said.

Premier Oil has a 53.125% interest in the Dua project, with partners Adelaide-based Santos Ltd. (31.875%), and PetroVietnam (15%).