EXPLORATION

Shell Todd keeps lid on test results

The testing program for the offshore Taranaki Pohokura South-1B appraisal well has finished but operator Shell Todd Oil Services is "keeping mum" about the results.

Shell Todd keeps lid on test results

The well, drilled near the Methanex Motunui complex but deviated offshore, was closed for four days earlier this month for a final pressure build-up and then reopened briefly on July 8 to run a production log. Earlier flow tests had been for seven and 14 days respectively.

The STOS website says that testing program is now complete and no significant activity is planned for the wellsite in the short term. However, the company is still not publicly revealing any gas and condensate flow rates for the well, initial results from which sparked a reserves downgrade earlier this year.

The well was drilled approximately 3.7km offshore to test the southern limits of the possible -1tcf north Taranaki field for partners Shell New Zealand, Todd Energy and OMV Petroleum.

Earlier this year Shell NZ Lloyd Taylor told EnergyReview.Net that the initial results from the Pohokura South-1B well were not as good as those from Pohokura-3, which was drilled 12km offshore. Also the "centre of gravity" for the development had moved offshore and the first gas would, in all probability, be from an offshore wellhead platform targeting the best reservoir, as seen in the Pohokura-2 and 3 wells, via pipeline to an onshore gas plant.

Meanwhile, some industry commentators are scoffing at the partners' reported remarks that enforced separate marketing would cause delays of three to seven years in bringing Pohokura onstream.

The Pohokura partners told the Wellington-based Commerce Commission earlier this month that any enforced separate marketing could cause development delays of up to seven years. Delays, from the current early 2006 development deadline, could cause $NZ1 billion worth of damage to the New Zealand economy in any cold, dry years.

The partners also said that if the commission did not authorise joint marketing, they would appeal and there would be no further capital expenditure on field development until all issues had been satisfactorily resolved.

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