        |
 |
Regional Overview (continued)Far EastINDONESIA ExxonMobil operates Indonesia's largest producing natural gas field, Arun, which supplies gas to the P.T. Arun LNG plant. In 1999, 196 cargoes of LNG from Arun were sold to buyers in Japan and Korea. Production of natural gas from the North Sumatra Offshore (NSO) 'A' Field (ExxonMobil interest 100 percent) started in July 1999. NSO production, which is expected to reach 450 million cubic feet per day, supplements Arun production along with satellite fields Pase and South Lhok Sukon A & D. In addition, a 50-percent working interest in the Block 'A' PSC, adjacent to Arun, was purchased during 1999. Plans for the block include development of three gas fields with production to commence by 2003 and testing of additional exploration potential.
ExxonMobil has interests in 11 blocks in Indonesia comprising 7 million acres. Indonesia accounted for 5 percent of ExxonMobil's total net oil and gas production in 1999. In the Makassar Strait PSC, offshore East Kalimantan, Pertamina, the state oil and gas company, approved the Plan of Development for the West Seno oil and gas field area. Detailed technical work is underway to confirm the feasibility of the project. Work continues to secure a market for the giant Natuna gas field (ExxonMobil interest 50 percent), estimated to contain 46 trillion cubic feet of hydrocarbon gas resources. MALAYSIA ExxonMobil is the largest oil producer in Malaysia and the largest supplier of natural gas to Peninsular Malaysia. The company has seven PSCs offshore Peninsular Malaysia, operates 30 platforms in 11 fields and has an interest in six additional field developments. Additionally, the company holds five PSCs in deepwater plays offshore Sabah and Sarawak in East Malaysia. In total, the company holds an interest in 5.8 million acres offshore Malaysia. In 1999, Malaysia accounted for 5 percent of ExxonMobil's net oil and gas production. During 1999, development and infill drilling were successfully completed at Seligi-F and Bekok-A/B platforms, respectively. Drilling activity will be completed in the first quarter of 2000 on the Tapis-E platform that was installed in 1998. Drilling activity is also scheduled on six additional fields during 2000.
Eight new oil fields and two gas fields are currently planned for development over the next few years. These new developments are expected to sustain current production levels through 2006. ExxonMobil's net gas sales in Malaysia averaged about 600 million cubic feet per day in 1999. These sales are supported by a portfolio of mature fields and new developments under the Gas Production Sharing Contract (GPSC) finalized in 1998. Progress continued toward the 2002 start-up of the Angsi development. ExxonMobil expects to meet about two-thirds of Peninsular Malaysia's projected gas demand for the foreseeable future. Angsi Development
The Angsi field is the first integrated oil and gas development under the gas PSC. The project is being executed in two phases with Phase 1 involving the installation of the Southern Gas pipeline in 2000 and Phase 2 covering the installation of the integrated oil and gas facilities in 2001. The development includes a central processing platform with production, gas compression, and water-injection facilities bridge-connected to a 52-conductor drilling/riser platform and a 32-conductor satellite platform located about four miles away. First oil and gas from the Angsi field is scheduled for 2002. The development is expected to recover 355 million oil-equivalent barrels.
AUSTRALIA
ExxonMobil is the largest operator in Australia with production from the Gippsland Basin in the Bass Strait, the Cooper/Eromanga and the Carnarvon basins. Total production from Australia accounted for 5 percent of the company's net oil and gas production in 1999. Active and successful drilling programs occurred in 1999 in the Blackback, West Tuna, West Kingfish, Halibut, and Flounder fields. The company operates in the Bass Strait with 21 offshore producing facilities and two onshore processing plants. Production is also contributed from fields in the Carnarvon Basin, including the Wandoo and Griffin fields, and from fields in central Australia. The Bass Strait contains significant gas resources and supplies virtually all of Victoria's natural gas requirements. Potential gas development projects in the Bass Strait include a new platform installation at Turrum, new pipelines from both the Bream and Turrum developments, and development of the Kipper field. In Australia's Northwest Shelf, the large Gorgon gas field (ExxonMobil interest 14.3 percent) has the potential to be a major supplier of LNG to the Asia-Pacific region.
ExxonMobil net gas sales in Australia averaged 325 million cubic feet per day in 1999, primarily from the Bass Strait and Cooper Basin. In Southeastern Australia, contracts were signed for gas sales into the New South Wales market later this year with the start-up of the Eastern Gas Pipeline. Negotiations are progressing for potential future gas sales to Tasmania. PAPUA NEW GUINEA ExxonMobil holds an interest in approximately 7.7 million acres in Papua New Guinea containing several oil and gas discoveries. Production, primarily from the Kutubu and Gobe fields in 1999, is projected to increase with the development of the Moran field in 2000. Discussions are underway for gas sales to Australian markets from several gas fields in Papua New Guinea.
|
|||||||||||||||
