Oil and Gas Developments in Far East in 1981

Abstract

Petroleum activity throughout the Far East region was brisk during 1981. Exploration acreage acquisition, drilling, and seismic activity proceeded rapidly in all of the main producing countries. In addition, activity expanded into some hitherto relatively inactive areas such as onshore Thailand, Sri Lanka, North Vietnam, etc. Exploration drilling increased approximately 12% in 1981. For the past few years there has been a dearth of major discoveries in the Far East region. However, during 1981 this trend was reversed. Although commercial significance of the discoveries is not entirely known, there were interesting oil and gas discoveries in onshore Thailand, offshore India, in the Cauvery basin, and onshore Burma. Indonesia was the most active country in the Far East again in 1981. Numerous discoveries were recorded. Exploration in India started in earnest along the east coast. Burma also recorded a busy year along the Irrawaddy River. Sri Lanka experienced exploration drilling in 1981 for the first time since 1976. Onshore Thailand had a flurry of activity and provided the most significant discoveries in the Far East region. The Philippines also had an active year and progressed rapidly with development work on 2 additional producing fields. Countries in the Far East region which recorded no significant change in petroleum related activities during 1981 were Bangladesh, Japan, Pakistan, South Korea, and Taiwan. The outlying islands such as Maldives likewise had minimal petroleum activity. China, in spite of great expectations, did not sign offshore contracts and thus recorded approximately the same level of activity as 1980. Production from the Far East region again declined slightly to an estimated 4.4 million BOPD. With no major discoveries over the last few years, present producing fields are for the most part fully developed and on the decline. Acreage acquisition during 1981 showed a large increase in many parts of the region. Indonesia offered 9 exploration blocks. All were successfully tendered. Onshore Thailand also had intense competition for areas adjacent to oil and gas discoveries by Shell and Esso. Participation by foreign contractors in exploration and production ventures throughout the Far East region increased during 1982. Countries such as Bangladesh, Burma, India, Thailand, and Malaysia all experienced increased interest by foreign companies. On the other hand, relinquishments by contractors in Pakistan and Philippines indicated a decrease in interest in those areas.