THURSDAY, March 28, 2024
nationthailand

PTTEP, joint venture partners announce successful test oil-gas drilling in Algeria

PTTEP, joint venture partners announce successful test oil-gas drilling in Algeria

PTT Exploration and Production and its partners Sonatrach and CNOOC have reported successful drilling results in the first exploration phase of the Hassi Bir Rekaiz Permits in Algeria.

 

The flow rates of crude oil and associated gas are very satisfactory, according to PTTEP president and chief executive officer Tevin Vongvanich. 
The last three exploration wells were drilled and yielded petroleum discoveries. 
The flow tests of the ninth exploration well (Sahane Bagas-1) were conducted in Ordovician and TAGI (Triassic) reservoirs. Crude-oil flow was measured at about 2,658 barrels per day and associated gas flow at about 2.13 million standard cubic feet per day – the highest flow rate among these three wells. 
Meanwhile the seventh exploration well (Rhourde Rhorfat-1) showed crude-oil flow at the approximate rate of 478bpd and the eighth exploration well (Rhourde Abadje-1) at about 484bpd. 
The drilling of these nine wells as per commitment to the contract of the Hassi Bir Rekaiz Permits took place between October 2011 and this month. In this exploration phase, seven wells were successfully tested for crude oil and associated gas. Furthermore, the third exploration well (ROS-1) was drilled and showed evidence of hydrocarbons from petrophysical analysis, and flow testing will be conducted soon. 
PTTEP and its partners plan to continue the second exploration phase, consisting of three-dimensional seismic acquisition and drilling of appraisal and exploration wells.
The Hassi Bir Rekaiz Permits are located onshore in eastern Algeria. They cover an area of 5,378 square kilometres. PTTEP is the operator with a 24.5-per-cent interest. Its joint-venture partners in this project are the Algerian national oil and gas company Sonatrach with a 51-per-cent interest and CNOOC, China's largest producer of offshore crude oil and natural gas, with 24.5 per cent.
Apart from Hassi Bir Rekaiz, PTTEP jointly operates the Bir Seba field 433a and 416b Permits in Algeria, which are currently in the development phase.
Standard & Poor's Ratings Services has revised the rating outlook on PTTEP to “stable” from “negative”. At the same time, it affirmed a “BBB+” long-term corporate credit rating and “axA+” long-term Asean regional scale rating. It also affirmed a “BBB+” issue rating on the senior unsecured notes that PTTEP guarantees.
“We revised the outlook on PTTEP to ‘stable’ to reflect our view that the company’s capital structure and leverage ratios are now commensurate with the rating and will remain at these levels for the next two years,” said S&P credit analyst Andrew Wong. 
“This is after PTTEP raised equity at the end of 2012, and used the proceeds to reduce debt. The company’s plan to pursue primarily organic growth in its existing blocks to achieve its production growth target will support its capital structure and leverage, in our view. PTTEP targets production to be 600,000 barrels of oil equivalent per day by 2020.”
 
 
 
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