SOCO production to be muted due to downtime

SOCO announced on Monday that its 2016 development drilling programme had commenced on the Te Giac Trang field of Block 16-1, offshore southern Vietnam.

The London-listed company said the infill wells - TGT-27P and TGT-28P - will be ‘batch drilled’ with the first well spudded on 6 November by the PetroVietnam Drilling PVD-6 jack-up rig on the H4- Wellhead Platform in the central area of the TGT Field.

It said the TGT partners were reviewing adding a further two infill wells on the southern H5-WHP following the completion of these wells.

SOCO's production guidance range for 2016 had been 10-11,500 BOEPD.

Due to the lack of drilling during the year, additional downtime associated with pressure-testing on the Ca Ngu Vang Field, along with the recent stoppage for rig positioning and well intervention work beyond that originally planned, the board said on Monday that production rates for the full year were now expected to be at the lower end of this guidance.

The TGT Full Field Development Plan partner discussions were in the final stages ahead of formal submission to the relevant authorities, it explained.

The FFDP includes additional wells and facilities options to increase total fluid-handling capacity.

Final submission to the Vietnamese Government is expected after the upcoming management committee meetings next week.

“We are delighted to commence the first development drilling programme on TGT since early 2015,” said president and CEO Ed Story.

“As indicated in our interim results, SOCO has the balance sheet strength to fully fund this programme from existing cash resources whilst taking advantage of the low drilling cost environment.

“Meanwhile, we continue to focus on enhancing the field water-handling capacity and arresting the field decline.”