Anzon JV Inks LOIs for FPSO and Rig for Australian BMG Project

The Basker Manta Gummy (BMG) Joint Venture has announced its intent to move forward on a major expansion of its Oil & Gas Development in the Gippsland Basin (Vic L26, L27 and L 28). 

• a forecast doubling of current oil rate to around 20,000 bopd
• the offshore processing of gas (capacity 120 MMscfd) to sales quality for transport by high pressure pipeline 90 km to the onshore Eastern Gas Pipeline (EGP) or reinjection into the reservoir for later production
• the offshore ship to ship transfer of liquids, eliminating logistical downtime
• an environmentally responsible development with zero flare discharge and nearly zero onshore “footprint”
• improved reliability including redundant equipment

The operating Lease Contract for the FPSO is expected to be finalized before the end of September 2008, and commissioning in Bass Strait is expected 2nd quarter 2010.

In addition, the BMG JV has entered into a LOI to contract the semi-submersible drilling rig Songa "Venus" for commencement of drilling in Nov/Dec this year for between 120 to 150 days. This rig will supplement the Maersk "Kan Tan IV" which will commence in May 2009, a 135 day drilling program. In total, between the two rigs, some 4 development wells (Basker, Manta and Gummy) targeting both Intra-Latrobe and Golden Beach sands, and possibly 1 or 2 appraisal/exploration wells, will be drilled. These wells are planned to be connected via manifolds and risers to the FPSO via a newly installed disconnectable Submerged Turret Production (STP) buoy and mooring.

In aggregate the Joint Venture is planning to spend up to A$1230 million dollars on drilling, completing and subsea connections including manifolds and pipeline, while the new FPSO, in which BWO is investing approximately US$400m inclusive of its gas processing facilities, will be leased for an initial period of 5 years plus options to extend the contract for up to a total period of 15 years. BWO will effectively provide all services; including the vessel, operations and maintenance.

The participants in the Basker-Manta Joint Venture are Anzon Australia Limited with 40%  (Operator), Beach Petroleum Limited with 30%, CIECO Exploration and Production (Australia) Pty Ltd with 20% and Sojitz Energy Australia Pty Ltd with 10%.