South Asia
5,000 boepd
Net production from the Group’s South Asia assets.
Tullow has had interests in South Asia for over 10 years and currently has net production in excess of 5,000 boepd. With the fast expansion of the Asian economy over the last few years, there remains a strong demand for energy in the region which offers significant future growth potential. Tullow’s operations in the area remain important to the Group and an active review of the portfolio began during the year to ensure the range of assets continued to deliver the best value now and in the long-term.
Bangladesh
Senior management visiting Bangora field in Bangladesh.
In October 2008, Tullow completed Phase 2 of the Bangora gas field development increasing processing capacity to 120 mmscfd and production from 70 to 100 mmscfd. Further increases are possible when the Bangora-3 well has been worked over and comes on line in the second quarter of 2009.
Elsewhere in Bangladesh, Tullow participated in the 3rd Licensing Round and successfully bid for offshore Block SS-08-05. The formal award of the block by the Government of Bangladesh is expected in the first half of 2009 and, Tullow plans to commence a 2D seismic acquisition programme later in the year. In Blocks 17&18 in the Bay of Bengal, a 250 sq km 3D seismic survey was acquired during the year. Tullow did not identify any material prospectivity on the acreage and has decided to relinquish its interest in these blocks.
Pakistan
Chachar field in Pakistan.
During 2008, Tullow decided to restructure its Pakistan business to address the ongoing security concerns and to enhance the value of the operations to the Group. Following this strategic decision, two key changes were made. In November, the operatorship of the Kohat exploration block was transferred to OGDCL, the Pakistan National Oil Company, with Tullow retaining its 40% interest. An exploration well is planned on this block in the first half of 2009. Secondly, in December, Tullow agreed the sale of its interest in the producing Chachar field to Pakistan Petroleum Ltd for US$7.5 million (£5.2 million). As a result, by year end Tullow had significantly reduced its in-country office overheads whilst retaining a significant exploration interest in Pakistan.
Elsewhere in Pakistan, geological field studies and seismic operations commenced on the Kalchas block in September, where multi-tcf surface anticlines could be the target of a drilling campaign in 2010. A possible extension of the Kalchas seismic programme into the neighbouring Kohlu and Block 28 licences will be considered during 2009.
India
2008 was a disappointing year for Tullow in relation to its Indian operations. Three exploration wells were drilled on Block CB-ON/1 with no hydrocarbons being encountered. All three wells were plugged and abandoned. Following a critical review of the drilling programme and the remaining prospectivity in the block, Tullow has decided not to enter the next exploration period and has withdrawn from the licence. During the year, significant efforts were also made to progress Tullow’s AA-ONJ/2 licence in Assam which had originally been applied for in 1996. However, at the end of the year, Tullow also took the strategic decision to withdraw from this licence and to fully withdraw from India, closing the Group’s Delhi office.
