Conoco Issues Commercial Declaration for Sutu Den Discovery

Conoco and its partners have issued a commercial declaration for the Sutu Den discovery in Block 15-1, offshore Vietnam. Conoco expects total future production from the Sutu Den structure to be at least 200 million barrels of oil, with the potential to exceed 400 million barrels of oil. First production is targeted in less than three years, as part of an aggressive development plan for the field.

Block 15-1 is in the Cuu Long Basin, 120 miles southeast of Ho Chi Minh City, and covers 1.15 million acres. The Sutu Den discovery is a large, faulted structure in the eastern portion of the block in 154 feet of water.

The declaration follows the June completion of an extended well test of the 15-1-SD-2X (ST) sidetracked appraisal well. Commerciality is based on a comprehensive analysis of results from the three wells drilled in Block 15-1, including:

    15-1-SD-1X - original discovery well; drilled August 2000; flow rate of 12,600 barrels of oil per day (bpd) from three zones
  • 15-1-SD-2X - appraisal well; drilled May 2001; flow rate of 11,032 bpd, based on combined well tests from two major pay zones in the fractured Basement and Miocene reservoirs
  • 15-1-SD-2X (ST) - sidetrack well to SD-2X; drilled June 2001; flow rate of 13,223 bpd from the fractured Basement, with 36-degree API gravity, which is a record for Basement reservoirs in Vietnam

Conoco holds a 23.25-percent interest in Block 15-1, which is operated by the Cuu Long Joint Operating Company. Other partners are PetroVietnam with a50 percent interest, Korean National Oil Corporation with a14.25 percent interest, SK Corp with a 9 percent interest and Geopetrol with the remaining 3.5 percent interest.

The Sutu Vang prospect, also in Block 15-1, is expected to be drilled before year-end. Conoco's offshore Vietnam acreage totals more than 5.75 million acres. The company currently is the largest acreage holder of any foreign oil company in Vietnam.