Woodmac sees $25.5b projects in SE Asia

Woodmac sees $25.5b projects in SE Asia

SINGAPORE (Reuter): A total of 54 major oil and gas projects
have been identified in Southeast Asia as new field developments,
energy consultant Wood Mackenzie (Woodmac) said yesterday.

In a survey, the company said the projects would cover some
2.9 billion barrels of recoverable oil and 66 trillion cubic feet
(TCF) of recoverable gas,

It estimated that US$25.5 billion could be committed to the
various oil and gas projects in the next seven to eight years,
including $7.3 billion in Indonesia and $4.5 billion in Malaysia.

Woodmac said the projects were either under development
already or were expected by the company to receive development
approval in coming years.

The survey excluded the giant Natuna D Alpha gas field, which
has estimated recoverable reserves of 46 trillion cubic feet.

Woodmac said the field is "unlikely to receive development
approval over the next several years, given the considerable
uncertainties that exist in relation to markets and price for the
gas."

The latest survey reflected the trend of recent years showing
that traditional exploration areas Indonesia and Malaysia
dominated the exploration and production landscape.

There were 17 projects identified in Indonesia and 11 in
Malaysia, the survey showed.

However, Myanmar and Vietnam have made a number of significant
discoveries in recent years, Woodmac said.

The survey covered projects from Myanmar to China and south to
Indonesia.

It excluded Papua New Guinea.

Onshore China was also excluded because projects there are
controlled by state-owned China National Petroleum Corp.

Woodmac said the survey was not an exhaustive list of all new
development projects in Southeast Asia, but was geared instead to
identify the major projects in the region.

ARCO

Meanwhile in Jakarta, state oil firm Pertamina said yesterday
its production sharing contractor Atlantic Richfield Co. (ARCO)
found another major offshore natural gas field in the Berau block
off Irian Jaya.

Pertamina spokesman Saleh Iskak said in a statement the
initial discovery, the Vorwata 1 well, tested 30 million cubic
feet per day of natural gas in January 1997.

He said the Vorwata 2 confirmation well, an 11-mile step-out
from Vorwata 1, tested 33 million cubic feet per day during April
1997.

A third well on the structure, Vorwata 3, tested 29 million
cubic feet per day during July 1997.

"The Vorwata discoveries are significant because they are in
close proximity to Wiriagar discoveries. Vorwata augments our
plans for a major gas development project," Iskak said.

He said Vorwata gas field was approximately nine miles (15
kilometers) from the Wiriagar Deep gas field discovered by ARCO
in 1994.

He said five wells in the Wiriagar Deep gas structure have
tested at cumulative flow rates as high as 110 million cubic feet
per day.

Pertamina said on Aug. 3 it was studying the possibility of
building two liquefied natural gas plants in Irian Jaya following
the gas find by ARCO.

ARCO said on March 10 it would complete an appraisal program
at its Irian Jaya gas field by the end of 1997.

Pertamina said ARCO holds 80 percent of the Wiriagar field and
Japan's Kanematsu Corp. holds the remaining 20 percent. ARCO
holds a 48-percent stake in the Berau block.