UMC Energy completes 2D seismic program

OIL and gas company, UMC Energy has announced the completion of 2D seismic acquisition program offshore PNG.

The company, in a statement said the 3000 line kilometre 2D seismic acquisition program over the offshore petroleum prospecting licences (PPL) 374 and PPL 375 held 100 per cent by Gini Energy Ltd was successfully completed.

UMC has a 30 per cent interest in the offshore exploration project. China National Offshore Oil Company (CNOOC) owns the remaining 70 per cent stake, and is the operator and is funding the entire cost of this survey.

BGP PNG Exploration’s 2D seismic acquisition vessel, the successfully completed the 2D acquisition project last Friday recording a total of 3015 line kilometres of 2D seismic data over the company’s offshore permits in PNG.

The two onshore licences held through the UMC-CNOOC agreement have contingent resources established and sit adjacent to newly built pipelines leading to a $US19billion LNG complex under construction that will start supplying Asian customers later this year.

"The 2D acquisition project was completed without incident and ahead of schedule. Processing of the 2D data is expected to be undertaken by CNOOC over the coming months," said UMC technical director Chris Hart.

In a separate statement, UMC said that the PNG authorities had clarified what is now required under the terms of the licence agreement.

Following a revision to the terms, during the  third and fourth years, at least 1,000 kilometres of 2D seismic must be acquired, and a 3D program must also be planned and carried out.

Subsequently, at least one exploration well will have to be drilled in the fifth year, with a second well to follow subject to a positive result.

UMC also clarified that CNOOC would remain responsible for funding any additional spending requirements related to these variations to the original terms.

Mr Hart explained: "this modification to the original work programme reflects sound technical requirements for these offshore permits to acquire 3D seismic data over the most prospective leads identified by the newly acquired 2D seismic prior to selection of the lowest risk prospects to undertake the drilling of exploration wells."

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