Additions to exploration and evaluation assets for Indonesia for the current year include costs related to three wells in the Lhokseumawe block, and one well in each of the North Ganal, Kofiau, and West Papua IV blocks, along with acquisition costs of the Lhokseumawe block. The additions to future drilling in Indonesia relate to the costs of drilling inventory and other activities incurred to prepare for the current drilling campaign. These costs will be allocated when future wells are drilled. Exploration and evaluation costs expensed directly to income include costs related to seismic and other exploration projects and branch office costs. In the current year, the Company also recorded proceeds of a farm-out of $9 million and received $61 million from former partners in exchange for assuming the partners' obligations for future drilling commitments.
Trinidad and Tobago
Additions to exploration and evaluation assets for Trinidad and Tobago for the current year include costs related to two wells drilled in Block 2(ab). Exploration and evaluation costs expensed directly to income include costs related to seismic and other exploration projects, payments that are specified in various PSCs, and branch office costs.
Exploration and evaluation costs expensed directly to income included costs related to the acquisition of multi-beam data over various blocks in Brazil. Additions of property, plant and equipment in the year relate to development projects in India.
BACKGROUND ON PROPERTIES
The Company's diversified portfolio of producing, development and exploration assets is described below.
The Company's principal producing natural gas and crude oil assets are in the D6 Block in India and in Block 9 in Bangladesh.
D6 Block, India
The Company entered into the PSC for the D6 Block in India in 2000 and has a 10 percent working interest, with Reliance Industries Limited ("Reliance"), the operator, holding a 60 percent interest and BP holding the remaining 30 percent interest. The D6 Block is 7,645 square kilometers lying approximately 20 kilometers offshore of the east coast of India.
Successful exploration programs in the D6 Block led to the discoveries of the Dhirubhai 1 and 3 natural gas fields in 2002 and the MA crude oil and natural gas field in 2006.
Production from the crude oil discovery in the MA field commenced in September 2008 and commercial production commenced in May 2009. Six wells are tied into a floating production storage offloading vessel ("FPSO"), which stores the crude oil until it is sold on the spot market at a price based on the Bonny Light reference price and adjusted for quality, and four of these wells are currently on production. In fiscal 2014, the joint venture plans to drill an additional gas development well and convert of one of the two suspended oil wells into a gas producing well to accelerate the production of the reservoir's gas reserves.
Field development of the Dhirubhai 1 and 3 fields included the drilling and tie-in of 18 wells, construction of an offshore platform and onshore gas plant facilities. Production from the Dhirubhai 1 and 3 natural gas discoveries commenced in April 2009 and commercial production commenced in May 2009. The natural gas produced from offshore is being received at an onshore facility at Gadimoga and is sold at the inlet to the East-West Pipeline owned by Reliance Gas Transportation Infrastructure Limited.
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