In the last quarter it also gained, then divested an interest in an offshore Thailand play and announced that tenders have been called for the development of the offshore New Zealand Maari project it has a 10% stake in.
In China the company is in discussions with CNOOC over several key issues relating to Block 22/12, in which Horizon has a 30% interest. These are: a subsurface development well plan; a downstream processing tariff for using existing CNOOC facilities and pipeline; and marketing arrangements for the produced crude.
According to Horizon’s fourth quarter activities report these issues will have to be decided before the development can proceed.
A feasibility study for Block 22/12’s 12-8 West field is nearing completion and, subject to the joint venture partners reaching agreement, the field will be developed as part of a multi-field development program being implemented by CNOOC on adjacent ground.
A geotechnical site survey of the planned platform location and pipeline route to the Wei 12-1 hub within the field has been carried out.
Drilling tubulars and supplies for two wells have been pre-purchased in anticipation of drilling starting on the Wei 6-12 South exploration well as early as September.
Horizon is also reprocessing seismic data in its wholly-owned Block 24/05 in the Lei Dong Basin.
Loading of field data and editing of all 83 seismic lines has been completed with processing of 15 lines over the main prospect in the Lei Dong East Sag more advanced.
Off Thailand’s shores Horizon entered into a new joint venture with Tana Exploration Company to each earn a 25% interest in the blocks of a Pearl Energy subsidiary by drilling six well bores on Bussabong and one well on Chang Daeng and to also pursue further opportunities in the Gulf of Thailand in an area of mutual interest that offsets the farm-in acreage.
But Bussabong proved to be commercially unsustainable and further drilling on the deposit was suspended, meaning Horizon and Tana relinquished the interests they would have earned in blocks B11/38 and B12/32.
However, the news is not all bad. The second phase of the joint venture remains alive with the Thailand Ministry of Energy recently announcing an open acreage bid round that includes more than 30,000 square kilometres that will be subject to the area of mutual interest.
Horizon’s offshore NZ activities in the Taranaki Basin are also coming to a head with tenders being called for the project’s development.
Those tenders close at the end of this month and the joint venturers on the project, which include operator OMV New Zealand, are discussing a draft Field Development Plan and Petroleum Mining Permit application with the relevant NZ Government authorities.
With the tender prices in hand, the joint venturers will be able to make a final financial investment decision, expected to be announced after September.
